QuBit Finance Loses $80M in Latest DeFi Hack

In a fresh round of DeFi exploit, Binance Smart Chain-based Qubit Finance was hacked for over $80 million on Friday morning, as confirmed by the team in a Twitter post. According to BSCscan, the address connected to the hack has over 206,809 BNB worth over $80 million. Furthermore, the address also owns over 127,000 qXETH, out of which 199 ETH was transferred to the Ethereum mainnet. . Decentralized protocol Qubit Finance allows users to supply their crypto assets to the protocol in return for loan against this collateral for a fixed fee. Its cross-chain feature QBridge enables users to collateralize their assets on other networks without moving assets from one chain to another. PeckShield, which audited Qubit’s smart contracts, reported that QBridge was hacked to mint a “huge amount of xETH collateral” that was then used to drain the entire amount of BNB held on QBridge. It seems the QBridge of @QubitFin is hacked to mint huge amount of xETH collateral and drain the pool funds about $80M. Please note we audited the Qubit lending, not the QBridge! More to come… — PeckShield Inc. (@peckshield) January 27, 2022 The attacker apparently used a deposit function in the QBridge contract and illicitly minted 77,162 qXETH, an asset that represents ether bridged via Qubit. It appears that the attackers tricked the protocol to show that they had deposited funds without making an actual deposit. These steps were repeated several times, an...