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ARTICLE · 25 FEBRUARY 2020

Manipulation, Hacks And System Errors Lead To Losses For Cryptocurrency Users And Exchanges

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Since Friday, Feb. 14, 2020, decentralized lending protocol bZx was twice exploited by attackers using a combination of methods involving flash loans and price manipulationS...

United StatesTechnology
Brian P. Bartish
Brian P. Bartish
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Since Friday, Feb. 14, 2020, decentralized lending protocol bZx was twice exploited by attackers using a combination of methods involving flash loans and price manipulations to profit on cryptocurrency swaps, resulting in total losses of approximately $954,000. The first attack took place on Feb. 14 and resulted in the attacker pocketing 1,193 ETH (approximately $318,000) after a bug in the bZx's smart contract code failed to run standard safety checks that should have prevented a highly leveraged position on ETH/BTC trading pairs. The second attack took place days later, resulting in losses of 2,388 ETH (approximately $636,000), perpetrated, in part, via oracle manipulation on the price of synthetic USD Coin stablecoins.

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