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Zabu Finance Suffers First Big Exploit in Avalanche Defi, Loses $3.2 Million

zabu

Zabu Finance, a decentralized yield farming protocol on Avalanche, suffered the first big hack related to the chain. The protocol was the victim of an exploit that allowed an attacker to steal $3.2 million in tokens, according to reports. The core of the exploit happened due to a vulnerability in the design of the Spore token, which allowed the minting of 4.5 billion zabu that were successfully withdrawn from the platform, taking the value of the currency to 0.

Zabu Finance Suffers First Big Avalanche Hack

Zabu Finance, a yield farm decentralized protocol built on top of the Avax blockchain, faced the big first hack related to the Avalanche chain last week. An attacker took advantage of a vulnerability and withdrew $3.2 million worth of several cryptocurrencies. The attack had its root in a pool of a token called Spore, which allowed the attacker to mint over 4.5 billion of the native token of the protocol (Zabu).

The tokens were then dumped in other defi trading protocols leveraging Avalanche, like Pangolin and Trader Joe. The exchange quickly opened withdrawals to allow users to take their funds from the platform to minimize the risk of these assets. This massive selloff cause the price of zabu to reach zero, causing investors to lose a large amount of funds owned in the form of the token.

However, the protocol quickly presented a plan to reimburse users for their losses.

Reimbursement Plan

Zabu presented a recovery and reimbursement schedule that plans to return funds to those most affected. The protocol already is rebuilding its farming protocols, and it plans to launch NFT that represents the debt to each protocol. It declared:

Affected Stakers will get airdrop NFTs, that are the representation of the compensation rights and we use protocol revenue to buy them back later. Protocol revenue includes NFT sales, Autofarm fees, Launchpad fees.

Zabu announced that all of the revenue coming from its next NFT project, called Zabu The Tiger, will be used to compensate pre-hack holders.

According to data provided by CoinGecko, the zabu token is now trading at $0.00009276, falling from the $0.004 price that the token had before the hack. The team informed users that after the hack they implemented an ongoing audit to avoid facing these kinds of problems again.

Despite the hack, AVAX has still increased seven-day total value locked (TVL) by 17.44% to $2.37 billion this week and defi projects are thriving on the network.

What do you think of the first big hack of one of Avalanche’s defi protocols? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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I Am Hip Hop TV Redefines Digital Media Distribution Landscape

PRESS RELEASE. February 16, 2024 – I Am Hip Hop TV, a pioneering startup dedicated to revolutionizing digital media distribution, announces its strategic approach to enhancing brand visibility and driving engagement across major social media platforms. With a focus on inciting meaningful user interaction that translates into increased awareness and sales conversions…
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Bank Protests and Holdups Continue to Rise in Lebanon, as Depositors Demand Savings

Bank Holdups and Protests Continue to Rise in Lebanon as Depositors Demand Their Own Savings

On Dec. 17, reports detail that residents in Lebanon have been staging sit-ins and protests at banks in order to access their own savings accounts. Since the economic collapse in 2019, Lebanon’s banks froze Lebanese bank accounts, and a number of branches have remained closed indefinitely. Although a few Lebanese have been forced to fork over their savings, most of the residents have fled or been arrested without any money.

Lebanon Banks Respond to Protests and Gunpoint Requests from People Wanting Their Savings Back

In August 2019, it became apparent to the world that Lebanon was suffering from a liquidity crisis, and there have been many reports that say financial coverups and U.S. sanctions put Lebanon’s economy in a vice grip. It has been reported that by late 2018, a handful of Lebanese commercial banks froze people’s accounts and by the first week of March 2020, Lebanon said it would default on its Eurobond debt.

The country began seeking restructuring agreements. However, Lebanon’s lira rate diverged from the black market rate in August . A report published in August 2022 details that the “black market rate is what the currency is actually worth now.” In June 2022, Bitcoin.com News reported on Lebanon’s inflation rate surging to 211% which highlighted the economist Steve Hanke, who said the country should leverage a currency board.

Bank Holdups and Protests Continue to Rise in Lebanon as Depositors Demand Their Own Savings
Lebanese soldiers who are still able to make a living as enforcers protect Lebanon’s central bank and current politicians.

On Dec. 17, NPR columnist Ruth Sherlock described how poverty-stricken Lebanese have been outside of banks protesting in order to get access to their own savings accounts. In Tripoli, Lebanon at an IBL Bank branch, Sherlock said a 53-year-old woman named Zahra Khaled sat in a wheelchair and would not leave the bank until the staff gave up her life savings. Sherlock reports that Khaled said the bank had frozen “tens of thousand dollars”.

Sherlock explains that Khaled’s protest was “one of the gentler tactics” and that some are using real or toy guns in order to recover their money. The NPR reporter does note that some Lebanese who resort to this tactic only want “what they are owed.” Countless reports, littered all over the internet, confirm Sherlock’s account that says Lebanese bank accounts have been frozen since 2019, since the onset of Lebanon’s economic collapse. In 2020, angry depositors and protests got so bad that the commercial banks armored the fronts of specific branch buildings with steel and cement walls.

Reuters reported in Sept. 2022 that “bank holdups snowball in Lebanon as depositors demand their own money,” as these types of acts have become a normal occurrence in the country. Reuters elaborated that five depositors held up banks in order to access their own funds and some depositors managed to get around $60K, while some people were taken into custody. In Nov. 2022, Al Jazeera detailed that banks in Lebanon reopened for two weeks. Al Jazeera was told by a Lebanese photographer that he had been waiting for a cheque to be cashed for over two weeks.

Sherlock’s reports stated that Khaled had negotiated for hours with the bank staff but they eventually left. Khaled was then taken out by the Internal Security Forces, Lebanese police who are also known as the ISF. Lebanese depositors have protested at banks such as Bank Audi, IBL Bank and Blom Bank. On Dec. 16, Reuters reported that a U.S. court of appeals has decided that Lebanese commercial banks can be tried outside Lebanon.

What do you think about Sherlock’s report that says Lebanese citizens are resorting to trying to get their funds at gunpoint and assembling protests in front of Lebanon’s commercial banks? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Drones, Fertility and Defi –

Drones, Fertility, and Defi — A Look at Alameda Research's Massive $5.4 Billion Portfolio of Investments

A lot has been revealed about the Alameda Research and FTX disasters in the past few weeks. The Financial Times (FT), Dec. 6, published documents that show Alameda’s investment portfolio. It claims the company spent over $5 billion on hundreds investments. Some funds were used for odd investments, such as Ivy Natal, a fertility company, and Brinc Drones, a drone manufacturer.

Alameda Invested in Close to 500 Firms and Projects

In the past two years, FTX 720 spent billions of dollars on investments, sponsorships and deals. At the end of January 2022, FTX looked colossal after it raised $400 million from investors like Softbank Vision Fund 2, Tiger Global, Temasek, Paradigm, and the Ontario Teachers’ Pension Plan Board.

After the Series C raise, FTX was valued at $32 billion and the former FTX CEO Sam Bankman-Fried (SBF) said FTX aimed to expand the firm’s “global reach.” After the revelations concerning Alameda’s balance sheet during the first week of November, FTX and SBF’s quantitative trading firm imploded.

Since then, FTX’s parent firm West Realm Shires Services, Alameda Research, and approximately 130 additional affiliated companies filed for Chapter 11 bankruptcy protection. This week on Dec. 6, 2022, FT released documentation tied to Alameda Research’s investments, which were close to 500 investments that added up to roughly $5.4 billion.

Drones, Fertility, and Defi — A Look at Alameda Research's Massive $5.4 Billion Portfolio of Investments
Genesis Digital Assets and Anthropic received the most funding from Alameda Research.

In addition to FT, The Block’s VP of research, Larry Cermak, exported the entire list of Alameda-based investments into an excel sheet. Cermak also noted that Alameda has made the largest investments in Genesis Digital Assets and Anthropic Digital Assets DA AG. K5 and IEX.

If the data is correct, the documentation shows Alameda spent a lot of money in blockchain projects, foundations, tokens and non-fungible token projects (NFT). These include Hole Tokens and Near, 1inch, Lido. Xterio. Aptos. Polygon for instance received $50,000,000 from Maclaurin Investments Ltd., otherwise known as Alameda Ventures.

Near gathered $50 million from FTX Ventures Ltd., and Maclaurin gave Near $30,000,000. FTX Ventures gave Yuga Labs roughly $50 million and Aptos scored $74.9 million from Clifton Bay Investments, also known as Alameda Research Ventures. Alameda has invested in well-known funds such as the Multicoin Venture Fund II or the Skybridge Capital II.

Drones, Fertility, and Defi — A Look at Alameda Research's Massive $5.4 Billion Portfolio of Investments
Alameda Research founder and former FTX CEO Sam Bankman-Fried (pictured left) and Alameda Research CEO Caroline Ellison (pictured right).

Money was sent to Chinese news companies like Blockbeats and O’daily News. The company invested in Paxos and Starkware, Circles, Fanatics (AxieInfinity), Paxos, Paxos, Paxos, Starkware, Circles, Starkware and Starkware. An Ohio-based produce and vertical farming firm called 80 Acres got $25 million and $11.5 million was funneled to a firm called Geniome.

A whopping $500 million went to the artificial intelligence (AI) research firm Anthropic and $1.5 million went to a fertility venture called Ivy Natal. FT described Alameda’s portfolio as a “disparate bundle of nearly 500 illiquid investments split across 10 holding companies.” The FT author further notes that “FT makes no claim as to the data’s accuracy or completeness” as far as the documentation of Alameda’s investments are concerned.

What do you think about all the alleged investments Alameda made? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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