Crypto Lender Celsius Admits Losses in $120M BadgerDAO Hack

However, the company didn’t specify the amount it lost.

AccessTimeIconDec 3, 2021 at 7:17 p.m. UTC
Updated Dec 3, 2021 at 7:39 p.m. UTC

Muyao was a markets reporter at CoinDesk.

Crypto lender Celsius Network confirmed the company has lost money from the latest decentralized finance (DeFi) hack on BadgerDAO, a lending platform that offers yields and focuses on wrapped bitcoin.

During an ask-me-anything (AMA) YouTube live stream on Friday, Celsius CEO Alex Mashinsky said the company “lost money” in the BadgerDAO hack without specifying the value of the losses. Some had speculated earlier Friday that roughly $51 million was lost, based on blockchain data.

“It wasn’t a Celsius hack,” Mashinsky said. “It was a Badger hack, but some of the Celsius funds were there so Celsius lost money. ... But none of the Celsius members lost money.”

“We are working with Badger to recover those funds,” Mashinsky added. “We are collaborating with them on the investigation.”

The company’s official Twitter account also posted a statement regarding the hack, following the live-stream event.

CoinDesk reached out to Celsius directly about how much was lost in the hack but the firm has yet to respond.

As CoinDesk reported, BadgerDAO suffered an exploit Wednesday worth about $120 million in a number of cryptocurrencies. The DeFi protocol offers opportunities to earn yield via different crypto assets including wrapped bitcoin.

As a popular crypto lending company, Celsius recently closed a $750 million Series B funding round despite the fact that it has been targeted by several regulators in the U.S. over alleged securities laws violations.

There have also been questions about how the company uses funds from its depositors. News of its involvement in BadgerDAO will likely add to those questions.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Muyao was a markets reporter at CoinDesk.

CoinDesk - Unknown

Muyao was a markets reporter at CoinDesk.

Trending

1
CoinDesk - Unknown
First Mover Asia: Bitcoin Holds Above $21K in Weekend Trading; Solana Web3 Phone Faces Long Odds

Ether stays over $1,200; prior blockchain phones have failed because the market has realized their functionalities are already available via apps that can be loaded onto any old phone.

CoinDesk - Unknown
2
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
3
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
4
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown