BonkDAO (Decentralized Autonomous Organization) has reported that it was recently affected by a $20 million drain through decentralized governance.
BonkDAO suffers from $20M theft
According to the agency, the attacker first bought $4 million worth of BONK tokens from several groups to gain enough voting power. They then used this to issue only negative feedback, which resulted in the transfer of 4.426 billion BONK tokens (about $20 million at the time) from BonkDAO’s treasury to their control wallet. The attacker rebranded the DAO as “Sowellian BonkDAO”.
Source: Solscan.io
As seen on solscan.io, siphoner has already started moving these tokens to the exchange. This has increased the selling pressure, with BONK down 7.25% in the last 24 hours to $0.0544. Two days ago, BONK was among the meme coins boasting 14% in one day in the midst of a market downturn.
BonkDAO is now said to be working with bridges, exchanges, the Solana Foundation, and the police to track down the money and disable or recover it.
https://x.com/bonk_inu/status/2074191403781906800
Crypto is active in July
The brute force economic strategy was successful because the DAO lacked multiple safeguards. Among them are execution-time locks, which cause a delay between the approval of the object and its execution, so that the community, developers, and researchers can detect anomalies. Another is the multisig override protocol, which uses a highly secure multisig wallet to temporarily bypass execution locks in the event of an emergency, such as a hack.
The latest developments follow the March hacking of bonk.fun – one of Solana’s meme coin platforms. At that time, the attackers exchanged “accept the Terms of Service” with malicious text that leaked all the wallets connected to the site. However, the attack was short-lived and the damage was minimal – the attackers drained 50 Solana (SOL) tokens from the 35 affected wallets.
A few hours before it happened today, the blockchain security company Blockaid known capitalization of $6 million following the DeFi protocol yields Summer.fi.
Was this post helpful?
Story Ends Here
Trust CoinPedia:
CoinPedia has been providing accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our team of expert researchers and journalists, following strict Editorial guidelines based on EEAT (Effectiveness, Expertise, Validity, Trustworthiness). Each article is checked against the standard to ensure accuracy, transparency, and reliability. Our review process ensures an unbiased review when we develop exchanges, platforms, or tools. We strive to provide timely updates on all aspects of crypto & blockchain, from startups to industry executives.
Investment Disclaimer:
All opinions and information shared represent the author’s opinion on market conditions. Please do your own research before making any financial decisions. Neither the author nor the publisher is responsible for your financial decisions.
Offers and Promotions:
Sponsored content and affiliate links can be viewed on our website. Advertisements are clearly identifiable, and our content is not independent of our advertisers.
Read the Next Article
