DeFi Lender bZx Reclaims $8M Stolen in Sunday's Attack

DeFi lending project bZx has been able to recover about $8 million in cryptocurrency from an attacker who stole the funds after exploiting a code bug over the weekend.

Sep 14, 2020 at 4:00 p.m. UTC
Updated Sep 14, 2021 at 9:55 a.m. UTC

Decentralized finance (DeFi) lending project bZx has been able to recover about $8 million in cryptocurrency from an attacker who stole the funds after exploiting a code bug over the weekend.

  • Paris Fotis, a spokesperson for the project, said bZx had been able to track down the attacker using his or her on-chain activity.
  • The attacker returned the funds after being exposed, according to Fotis.
  • bZx said in an incident report that $8 million worth of cryptocurrency had been stolen Sunday by an attacker who exploited a code bug to mint the protocol's interest-earning iToken, which was used to redeem, and walk away with, digital assets held in various lending pools.
  • bZx’s official Twitter account announced earlier today that funds had been restored.
  • This was the third, and the largest, attack on the bZx protocol so far this year.
  • bZx's Kyle Kistner declined to tell CoinDesk anything about the attacker's identity when we initially wrote about the attack early Monday.
  • Fotis reiterated this, telling CoinDesk the project wouldn't reveal the attacker's identity for "legal reasons."
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