The Defi protocol, pNetwork alerted the community of a 277 Bitcoin (BTC) hack, which amounts to 12.67 million in USD. The network revealed that the attacker installed a bug on the Binance Blockchain codebase of pNetwork. However, the protocol confirmed safety for other funds as no more bridges had to bear the burn of the attack.
1/N We’re sorry to inform the community that an attacker was able to leverage a bug in our codebase and attack pBTC on BSC, stealing 277 BTC (most of its collateral).
1/N We're sorry to inform the community that an attacker was able to leverage a bug in our codebase and attack pBTC on BSC, stealing 277 BTC (most of its collateral).
The other bridges were not affected. All other funds in the pNetwork are safe.— pNetwork 🦜 (@pNetworkDeFi) September 19, 2021
According to the pNetwork’s Twitter thread, the bug has been identified and the protocol is currently rehabilitating it, to re-activate the bridges once secured, which should take mere hours. The network assures that they are working rigorously towards the solution for their pBTC on BSC holders and will further update of developments. Additionally, the network has even offered a bounty to the hacker worth $1,500,000 upon returning all funds. Nevertheless, the organization highlights that it’s a “long shot”.
“To the black hat hacker. Although this is a long shot, we’re offering a clean $1,500,000 bounty if funds are returned. Finding vulnerabilities is part of the game, unfortunately, but we all want DeFi ecosystem to continue growing, returning funds is a step in that direction.”, pNetwork tweeted.
The Defi hack trend has taken the better of the blockchain system. The latest attack saw the DEX protocol, NowSwap suffer a loss of over $1 million during an attack last week. The attackers stole 535,000 USDT and 158 WETH. USDTs are converted to ETH through the distributed network service, 1inch, and further transferred to the Ethernet Square anonymous trading platform, Tornado Cash.
Defi Hack Frenzy
Multiple protocols have suffered the consequences of the Defi hack frenzy, including CREAM Finance that was exploited for 462,079,976 in AMP tokens and 2,804.96 ETH tokens, and Neko Network that lost over 2 million in Stablecoins. Neko Network attacker’s address obtained 2 million USDT, 390,000 BUSD, and 1 BTCB. Furthermore, the historical hack of PolyNetwork worth $610 million, recently recovered all its funds from the hack. However, it had to travel a long way to refund its users’ stolen funds.
New Order Collaborates with Outlier Ventures to launch new DeFi projects
An emerging community-led Decentralized Autonomous Organization (or DAO) incubator that is dedicated to early-stage Decentralized Finance projects in the market called New Order has recently announced a partnership with Outlier Venture’s Base Camp which is a renowned web3 accelerator. Together, both New Order and Outlier Ventures would release more than 30 different DeFi projects within the next two years.
The partnership was made possible after New Order managed to raise a total of $4 million through a private fundraising round which saw participation from several top-tier venture capital firms as well as certain angel investors. This private funding round was ultimately led by Outlier Ventures, Digital Finance Group, and also LedgerPrime.
According to the DAO incubator company, the funds would support the launch of incoming DeFi projects during their early stages. New Order is set to go live in December as a DAO incubator to start working on its initiative of releasing up to 30 new DeFi projects each year.
Layer-1 networks along with DeFi projects are on New Order’s radar at the moment to create its original venture platform in the future. The co-founder of New Order, Eden Dhaliwal agrees that their DAO structure is committed to bringing together some of the best DeFi builders available while taking care of funding and building with the support of their community from the very beginning.
As DAO models continue to be a symbol of successful initiatives that gain not only support and popularity among other blockchain-powered projects, New Order presents an advantageous opportunity to democratize access to investing. It is permissionless and equally open-source to provide resources to next-gen DeFi projects. New Order would be opening up a DeFi marketplace for revenue in the form of BTC, ETH, and supported stablecoins, thus making it an increasingly diversified DAO Treasury.
The partnership between New Order and Outlier Ventures is a positive indication, especially when the DeFi incubator is already on its way to becoming one of the key innovators within the Decentralized Finance space. New Order is assisted by its existing community of builders, smart contract devs, and interested investors to give rise to the next-gen DeFi apps (some of which would also support the Metaverse).
The long list of corporate supporters who have joined New Order as investors would help extend the reach of the incubator’s to build a bridge between offline and online worlds and also design DeFi startups with untapped potential.
One of the leading investors of the recent private fundraiser, LedgerPrime’s CIO, Shiliang Tang said that the changes in coordination through DAOs have led to this collaboration among early-stage venture creators. The company’s involvement with New Order is in fact an important aspect of empowering builders to redesign structures located outside orthodox venture models.
SEC Chair: Innovation Around DeFi “Could Be Real”
Gary Gensler believes that DeFi could offer “real innovation,” but he is convinced that the sector will not survive without regulatory compliance.
U.S. Securities and Exchange Chair Gary Gensler said that new technologies do not tend to persist if they fail to come into compliance with the law during a fireside chat with Jay Clayton at the Digital Asset Compliance & Market Integrity Summit.
While Gensler believes that decentralized finance could be the source of innovation, he claims that it has to fall within the existing regulatory framework:
The innovation around DeFi could be real, but they won’t persist if they stay outside of the regulatory framework.
Gensler also voiced his concerns about the centralization of some DeFi projects and implied that the goal of such projects might be to skirt existing anti-money laundering laws.
Speaking of the regulator’s reluctance to approve a spot Bitcoin exchange-traded fund, Gensler told No. 42 that trading around the globe is not inside the U.S. regulatory register. He urged the trading and lending platform to “come in and talk”:
Trading and lending platforms are really in an important place for investor and consumer protection. Come in and talk to us… work with us. Where appropriate we’ll use the enforcement tool. Work to get registered with the law.
The SEC boss has reiterated that stablecoins remind him of poker chips at a casino:
[Stablecoins] made it more efficient within the ecosystem. But it also allowed people around the globe, the people who tried to, to avoid money laundering and tax compliance in jurisdiction after jurisdiction.
According to Gensler, stablecoins are responsible for 80% of trading on the crypto market.
Huobi Primelist-Supported DeFi Project Drained of $31 Million
Days since the last DeFi hack: 0
Decentralized finance protocol MonoX Finance has been drained of $31 million as the result of a hack that occurred earlier today.
It was the third project to appear on Primelist, the token listing platform of major cryptocurrency exchange Huobi, earlier this month.
The team has already addressed the incident in a statement on Twitter, claiming that a vulnerability in the swap contract was used by the attacker to artificially inflate the price of the MONO token and then purchase all digital assets in the pool.
This morning our contract has been exploited. We are sorry to our users who have deposited funds. The team is investigating and will try our very best to get the stolen funds back. We thank our community for your support.— MonoX (@MonoXFinance) November 30, 2021
In a lengthy Twitter thread, MonoX also made a desperate plea to the hacker in an attempt to reach out to him/her:
We also really wish to have a chance in talking with the “hacker”. We value very much for what we’ve built for the current and future MonoX, and most importantly our users and their funds; PLEASE reach out to us.
The attacker pocketed $18.2 million worth of wrapped Ether (WETH) and $10.5 million worth of Polygon (MATIC).
In early August, $610 million worth of crypto was stolen from cross-chain DeFi project Poly Network, which marked the biggest DeFi heist to date. After several weeks of headline-grabbing drama, the hacker ended up returning the entire sum, which led to plenty of speculation about his real intentions.