Major decentralized autonomous organization (DAO) BadgerDAO just suffered a massive hack on its platform. Covered: BadgerDEO Hacked What is BadgerDAO? BadgerDAO, one of the largest DAOs in the crypto space, just got exploited by an unknown source. As crypto goes more mainstream, the space has unfortunately been attracting more and more decentralized finance (DeFi) hacks […] The post BadgerDAO Hacked For Over Over $120 Million In User Funds Exploit appeared first on CryptosRus.

BadgerDAO Hacked For Over Over $120 Million In User Funds Exploit

Major decentralized autonomous organization (DAO) BadgerDAO just suffered a massive hack on its platform.

Covered:

  • BadgerDEO Hacked
  • What is BadgerDAO?

BadgerDAO, one of the largest DAOs in the crypto space, just got exploited by an unknown source. As crypto goes more mainstream, the space has unfortunately been attracting more and more decentralized finance (DeFi) hacks as well. 

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BadgerDAO Hacked

Last night, the BadgerDAO team took to Twitter to alert users that the DAO has received multiple reports of unauthorized withdrawals.

As the team investigated the issue, it came to light that the DeFi protocol was in fact exploited. While the total sum of Funds taken from the platform is still unclear, sources are estimating that more than $120 million in user funds were swiped from their digital wallets.

Blockchain security company PeckShield also pointed out the hack, showing where the $120 million in stolen funds is certainly sitting.

Some people took note of the fraudulent activity, and it looks like the withdrawals have been taking place for the past 12 days and could still be ongoing.

Following the news, the DAO’s native token (BADGER) plummeted about 20% from a local high of $29 to roughly $22. Ouch.

What is BadgerDAO?

BadgerDAO is a protocol that allows users to use Bitcoin as collateral across other DeFi projects. It is a decentralized autonomous organization, which may sound like a mouthful, but is essentially is an organization represented by transparent rules encoded as a computer program, controlled by the organizations’ members rather than a central governing body.

A common example I like to think of to understand a DAO is charity. A DAO functions in a similar manner, as charities collect money from various people to use towards any given cause. DAOs have been formed online for similar purposes, like the most recent ConstitutionDAO, which raised over $40 million in an attempt to win an auction of a copy of the US Constitution.

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BadgerDAO was formed to allow users to interact with DeFi, however, not all DeFi is equal, and there are countless protocols out there that can’t always guarantee the security of your funds, as the latest BadgerDAO hack should make clear. Tread the DeFi waters lightly!

The post BadgerDAO Hacked For Over Over $120 Million In User Funds Exploit appeared first on CryptosRus.