Allbridge DeFi Protocol Recovers Stolen Cryptocurrency, Hacker Receives Reward

• Allbridge, a multi-chain DeFi token bridge, claims to have recovered 1,500 BNB from the attacker.
• After being hit by a $570,000 attack one day later, Allbridge identified the attacker as a cross-chain solutions provider.
• According to the press time, the bridge has a quiet 2023 performance with a total valuation of $5.1 million.

Allbridge, a multi-chain token DeFi bridge, said the attacker took 1,500 BNB as part of the stolen funds.

One day after Allbridge’s $570,000 attack, the cross-chain solution provider identified the attacker.

Allbridge Offers Reward to Attacker

Over the weekend, Allbridge returned most of the stolen funds to the network by providing the “UF Dao Hacker” address in the latest update on Twitter. According to Allbridge, the actor returned 1,500 BNB or about $465,000 of the $570,000 loot.

According to the platform, the returned BNB was converted to BUSD for compensation.

However, another address was responsible for the attack. Allbridge explained, “There was a different address that used the same attack technique but did not reach us… We want the second attacker to come forward for restitution.”

According to CertiK Alert, 1,400 BNB from TornadoCash was delivered to Allbridge’s recovery address.

The DeFi attack occurred on April 1 on a bridge that combines EVM and non-EVM compatible blockchains. On April 2, Peckshield warned Allbridge about the potential manipulation of its exchange-related formula for the bridge.

The attacker managed to empty the pool with 282,889 BUSD and 290,868 USDT while serving as both a liquidity provider and an exchange. However, the platform announced on the same day that “we are tracking the attacker.”

Euler Also Recovers Stolen Funds

Allbridge stated that it rewarded the attacker without facing any legal consequences for returning the stolen funds. According to the platform, the weakness could affect other pools on the BNB Chain that focus on BUSD/USDT.

Currently, the bridge has a quiet 2023 performance with a total valuation of $5.1 million.

Meanwhile, Allbridge’s native ABR is also performing poorly in the crypto market. As of press time, it is trading at around $0.19, losing more than 2% in the last day. According to CoinGecko data, Allbridge (ABR) trading volume has dropped by 55.9% in the last 24 hours.

Another DeFi platform, Euler Finance, also successfully recovered all funds stolen in an attack on March 13. The platform announced that it had successfully negotiated with the attacker to return most of the stolen funds.

Disclaimer

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