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Crypto Hacker Hits BZX DeFi App Again Stealing $635,000 in Ethereum (ETH)

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Tue, 02/18/2020 - 09:44
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  • The DeFi app bZx suffers its second hack in a row, now losing 2,378 in Ethereum (ETH)

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Contents

A few days ago, the Fulcrum DeFi ecosystem was hacked via a soft spot in the financial primitive bZx which is utilized for trading on Fulcrum. The hacker managed to get away with 2,300 in Ethereum ($575,000).

The hacker managed to get the money through manipulations of crypto loans.

Now, it has been reported that the hacker has managed to take a slightly higher amount of Ether than previously. This time, it was more than 2,378 ETH ($635,000).

‘Someone has duped bZx once again’

A blog post has shared a quick analysis of another smart hacker’s attack against the bZx DeFi app. Mudit Gupta, an ex-Google software engineer and a DLT enthusiast, stated that it is too early to speak of a detailed analysis of the new hack but he has shared some quick analysis so far.

“The hack was very similar to the last hack and executed in a single transaction on February 18, 2020.”

Again, the hacker used the trading system to get ahold of the 2,378 ETH and manipulated it out to their wallet.

“The hacker gained a guaranteed 2378 ETH, but bZx lost 2716 ETH. So, someone else earned 338 ETH. This 338 ETH was earned by people who fulfilled the hacker’s 900 ETH order for sUSD on Kyber. Maybe the hacker filled their own orders so they might have made up to 2716 ETH.”

Thus, the hacker managed to make over $1 million in Ethereum after the two attacks.

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Charlie Lee slams DeFi for its centralization

Previously, U.Today reported that Litecoin co-founder Charlie Lee bashed DeFi calling it similar to centralized exchanges, since all operations on the Fulcrum contract have been suspended, apart from lending and unlending. He tweeted:

“This is why I don't believe in DeFi. It's the worst of both worlds. Most DeFi can be shut down by a centralized party, so it's just decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization. So how is this better than what we have now?”

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Bitcoin (BTC) Scammers Impersonate Bill Gates and Endanger Almost 30K YouTubers

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Sun, 03/29/2020 - 19:38
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  • Bitcoin (BTC) scammers know no quarantines or self-isolation. Dozens of fraudulent airdrops falsely endorsed by Bill Gates ask YouTubers to send in their Bitcoins.

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Contents

Typically, fake YouTube airdrops are quite similar to each other. With the current pandemic enraging across the planet, a series of scams that impersonate Bill Gates have some distinct features.

With Bitcoin (BTC) Price Drop, Scammers are Getting Greedy

Just like in several other previous cases, the fraudsters launch fake 'live streams' on YouTube, asking users to send in their Bitcoins (BTC) in order to get redouble the initial amount.  An 'entry ticket' into to this scam starts at 0.1 BTC which is more than $650. With previous scams, it was much cheaper.

Fake YouTube Bitcoin (BTC) airdrop
Image via YouTube

The scammers also publish the URLs of this campaign, which are linked to suspicious websites. Unlike previous cases, fraudsters launch multiple live streams simultaneously. At press time of this article, at least two of them were active.

Multiple scam streams on YouTube
Image by YouTube

According to statistics, the average popularity of one live stream is about 30,000 viewers.

Very Bad Idea

Alongside that, launching fake airdrops on behalf of Microsoft's Bill Gates isn't a slam dunk for the fraudsters. It may seem ironic, but Mr. Gates is a prominent critic of cryptocurrencies, particularly of Bitcoin (BTC). He is sure that digital assets represent a kind of a ‘greater fool theory’ type of investment.

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Cryptocurrencies kill, added Mr. Gates. To him, its only use-case besides short-term speculations is illegal funding for drug trafficking:

Right now cryptocurrencies are used for buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way.

The U.Today team will one more time state that no airdrop will be conducted without the notification from an official website of a product or token. Any YouTube, Medium, and/or Telegram announcements may shill scammers. Never send your money to unknown persons.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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