AllianceBlock Token Plunges 51% After $5M Exploit of Bonq DAO

Hackers have siphoned off roughly $5 million worth of allianceBlock (ALBT) tokens on Bonq, a decentralized borrowing protocol, according to a Wednesday announcement from AllianceBlock.

AllianceBlock has paused all activity on its bridge following the attack, which occurred Wednesday afternoon. During the exploit a Polygon wallet accessed 112 million ALBT tokens, bridging them from the Polygon blockchain to the Ethereum blockchain. The hacker also got 500,000 USDC from dumping bonq euro (BEUR) tokens.

The protocol's team, along with that of Bonq, will mint new ALBT tokens and airdrop tokens to the affected wallet addresses.

"The AllianceBlock and Bonq Teams, including all connected partners, are now in the process of removing the liquidity, and are halting all exchange trading," the announcement reads.

AllianceBlock says none of its smart contracts were breached or compromised during the attack, but that hasn't assuaged investors' fears. The ALBT token's price plunged roughly 51% following the exploit, according to CoinMarketCap.

During the oracle hack, the attacker also minted 100 million BEUR tokens, decreasing their price to almost zero. That subsequently triggered the liquidation of the affected ALBT troves, according to a representative from Bonq.