Stablecoin company Beanstalk loses $182m in hack

Decentralised credit-based stablecoin business Beanstalk was hacked over the weekend – resulting in $182 million being drained from the its reserves.

The hacker used a flash loan to exploit the platform’s governance mechanism to send the funds to a wallet they controlled.

However, it’s been reported that the attacker only managed to cash out $80 million in total.
Blockchain security company PeckShield told cryptonews.com that the hacker walked away with around ETH 25,000 and 36 million worth of Bean – the company’s stablecoin.

It said that after swapping, the stablecoin lost its dollar peg, which could be the reason the hacker walked away with less crypto.

Beanstalk Farms, the decentralized development team working on Beanstalk, said it is preparing a strategy to “safely re-launch a more secure Beanstalk with a path forward”.

The business said that the Beanstalk contract on the Ethereum mainnet was exploited via a previously-unknown issue with Beanstalk’s governance process.

The team was immediately alerted and took action to temporarily shut off protocol governance and pause Beanstalk.

The team has since burned the remaining Beans in the hacker contract.

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