Ankr exploit has allowed the exploiter to mine over 20 trillion aBNB
None of the underlying staking funds of Ankr were compromised with near to no effect on its infrastructure services.
Downfalls in the industry, creating more chaos. Ankr, a decentralized liquidity protocol has asked its users to stop all kinds of trading of its aBNB tokens.
The reason given for this decision was an exploit in their BNB staking reward token that has allowed the exploiter to mine over 20 trillion aBNB.
All of the minted aBNB tokens were dumped in the market and were swapped by those who did not know about the exploit. The exploiter has been able to convert aBNBs worth $5 million USD on PancakeSwap. Ankr made an announcement regarding the exploit on Twitter and informed its users that they are working with global exchanges to halt trading. However, as per their tweets, none of the underlying staking funds of Ankr were compromised with near to no effect on its infrastructure services.
The exploiter was able to exchange the implementation smart contract with a vulnerable contract address. This is not possible without having access to the private keys and a compromised private key is supposedly the reason behind this exploit. Even though the BNB smart chain has restricted the exploiter, the damage has been done.
Ankr has informed its users that it would be working towards compensating the affected users with the max damage being not more than $5 million USD. Ankr would be purchasing 5 billion worth of BNB tokens to compensate for the losses for the liquidity pools that had to suffer the losses because of the exploits. Ankr also assured its users that it is working towards mitigating the situation and not letting the same scenarios come again.
Events such as these cause significant damage not only to the brands but also to the industry as a whole. Amidst this crypto winter, unfortunate exploits such as this can further deepen the grievances of crypto investors.
Also, Read - Apple Blocks Coinbase Wallet Release on iOS
