Decentralized finance project Beanstalk Farms sees $182m loss after loan attack  

RIYADH: Decentralized credit-based stablecoin protocol Beanstalk Farms has lost $182 million as a result of a flash loan attack.

In addition to this, the hacker got away with $80 million in crypto tokens, Bloomberg reported, citing blockchain security company PeckShield.

A flash loan attack occurs when the borrower manipulates the markets as the loan is taking place, driving the value of the borrowed token underwater thanks to excess slippage, and then allowing the attacker to buy back the token at a deflated price.

Not only this, but the attacker also donated a total of $250,000 to Ukraine.

Beanstalk suffered an exploit today.

The Beanstalk Farms team is investigating the attack and will make an announcement to the community as soon as possible.

— Beanstalk Farms (@BeanstalkFarms) April 17, 2022

Following the incident, the project’s native token – also referred to as BEAN – plunged 75 percent from its $1 peg against the dollar.

Upon revealing their identities, founders of the protocol emphasized that they had nothing to do with the attack. 

We’re engaging all efforts to try to move forward. As a decentralized project, we are asking the DeFi community and experts in chain analytics to help us limit the exploiter’s ability to withdraw funds via CEXes. If the exploiter is open to a discussion, we are as well. https://t.co/fwceVz6hbi

— Beanstalk Farms (@BeanstalkFarms) April 17, 2022

“Like all other investors in Beanstalk, we lost all of our deposited assets in the Silo, which was substantial,” the creators said, according to Bloomberg.

It is yet to be disclosed if investors who lost their funds will be reimbursed.