Beanstalk Flash Loan - My wallet is lighter with $32,000

By PVMihalache | Mind Puzzle | 19 Apr 2022


This is painful to talk about but hey ... welcome to the crypto life! Some will say no pain - no gain, but this kind of events have nothing with do with the level of risk in an investment. Beanstalk was hacked and the ETH-based stablecoin protocol lost $182 million to exploit! 

According to PeckShield, the hacker stole $80 million, funneled through the crypto mixer Tornado Cash. The flash loan attack also faked a protocol improvement proposal to gift funds held in the Beanstalk treasury to an Ukraine Aid charity

491dcdb3ce117618adede505846cfaeec0cd77535ada711db9502a2257b27364.jpg

I was affected by the Harvest Finance hack and the Pickle Finance exploit but this time the bag value went from 32,000 USD to zero! I discovered Bean Money in November 2021, and I was impressed by this new decentralized credit based stablecoin protocol built on Ethereum. The first Beanstalk product is $BEAN, an ERC-20 USD stablecoin with a variety of passive and active opportunities to earn interest. The unique feature of Beanstalk Protocol is the use of credit instead of collateral requirements, which creates price stability. My review is still up and you can read it at - Dreaming at Bean Money while Climbing on the Beanstalk Protocol

 

49c3afdcec438c302d0e39840cbed67512043aaac60997eb73fa8a7b12bc4534.jpg

Time goes quicker in the Cryptoverse had a fun approach when the project celebrated 100 days! Many started their climb up the beanstalk, in the search of a golden goose, and this created an organic community. Me, you and you as well ... we are Jacktoshi! We are those who went up the beanstalk and reached the DeFi clouds. Have a laugh while reading Climbing up the Beanstalk - 100 days for Jacktoshi and the Golden Beans

38276eb5a91dae35ecb9e7b07b71853ff2c815480e07a831ca10f5e16fd2609a.jpg

The true story and my Beanstalk adventure started in March, when a poker tournament was organized. I will write the tension and success I experienced that night in a different article, because now the focus is on the hack and on the huge amount of money that was stolen. Beanstalk Farms Poker Tournament - Fill your bag with $BEANS and $PODS

Image

The important aspect is that the prize pool had over 600,000 $PODS, which in time would have become $600,000 worth of $BEANS. The top 20 players received prizes, with a minimum of 7,641 $PODS for the player that will finish 20th in the tournament. 

ea319379e3c509e2b0c1fa741fa14a1e9dfe933eab1d09b7660ae3350d788fa0.png

I had an amazing run and even if I was top many times during the night... I finished 5th. My prize was no less than 32,983 PODS, and all I could say was "are you fu*king kidding me? This can become $32,983 when my turn comes! WOW!" 

7b9f647d54570ae236f9c7683fb981cd57c0971adc4d92ee382b99c927670412.png

All I had to do was to wait in line for my pods to become BEANS! I had 627.2 million pods ahead to transform but I was ready to wait. Didn't want to swap PODS for 20-30% of the BEANS value so the long wait was the only option! Until the sh*t happened! 

0f10542e3eeddd1bc43841c33b3a17921cea89c770018aca5993ac721cc4e185.png

On the 17th of April 2022 ... all the magic beans are gone! A flaw in the BeanstalkFarms protocol allowed the hacker(s) to steal 24,830 ETH and to donate $250,00 to Ukraine. The total lost was over $182 million and $BEAN went from $1 to zero that night! 

0b8db771318ef792cea04d3dea787f222902e5a8607925f08f151d83c33f72e0.jpg

It looks like the flaw was there, and someone just took advantage of it! The auditor missed the code flaw as well, and the team emergency preparation was equal to none!

8a08ff65ed068b6d3643d7d986679bc28e495b7e98eebba02db0cbc483d7b789.jpg

At least Proof of Beauty & HistoriansDAO are creating beautiful NFTs using the transaction #HASH! The Proof of Beauty NFT can be admired in this tweet!

559df499024bce36c84e99b48cca55f8a54896c1804d455099690d7df94c973d.jpg

The team apologized for the lost money and the suffering, but highlighted that the protocol had no backing ... making the recovery of funds highly unlikely. 

74750c09b6571dfde90f33f7b165d8065499191d67cfdc351fa6097ed1215a33.jpg

The three leaders and creators (Benjamin Weintraub, Brendan Sanderson and Michael Montoya) disclosed their identities because of the events. They wanted to prove that they had nothing to do with the attack on Beanstalk, no involvement and no prior knowledge. They said they lost their assets, like all other investors. The FBI was contacted and the team will fully cooperate with them to track down the perpetrators, and hopefully recover everything that was stolen. The $76 million in non-Beanstalk assets stolen from the liquidity pools where giving value to $BEANS, therefore the token has no value after the hack. Jack the Hacker cut the Beanstalk! The golden goose is dead!   

Beanstalk was designed and implemented as an open-source, decentralized system that could be improved over time via on-chain governance. The same governance procedure that facilitated the adoption and implementation of over a dozen BIPs since launch, which have dramatically improved Beanstalk, was ultimately used to attack it. 

 

 

 

68FAFEF3-BEA1-4397-AF08-521DB901D3B3.jpg

I will not lose my faith in Beanstalk! The vibrant community and the team can recover after this unfortunate event!  The Beanstalk are so unique and innovative that the Cryptoverse needs it! Let's show our support and make Beanstalk great again!

ae517d1afbdb8144a9b9f3d3bfd2013e076a32990c032b0688bde55f99692192.jpg

Residual Income:

Hive Blogging - LeoFinance, Peakd, etc

Join Crypto.com

Join Splinterlands!

PVMihalache Amazon Books

DeFi bounty at CakeDeFi with $30 DFI for new users

The fountains: PipeFlare ZCashGlobalHive ZCash & Get.ZEN

Publishing bundle: Publish0x,  readcashnoisecashLBRY & Presearch

4029272aab259f9df7f0d091512e70c36bc451edd86dfb4caaf3a805c7e346dd.jpg

How do you rate this article?


93

6

PVMihalache
PVMihalache Verified Member

Content Creator ✍️ Humble Farmer 🚜 Meme Lord 🐸 UMAster 🐔 Bronze Owl 🦉 CRE8R 🧱


Mind Puzzle
Mind Puzzle

Think! ... it's still free! An amalgam of cryptocurrency, science, arts, news and other manifestations of human intellectual will be published on this blog. Sometimes I will add my personal opinions or midnight revelations

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.