According to sources, the theBadgerDAO attack cost Celsius Network more than $50 million
Celsius, a cryptocurrency lending firm, is said to lose more than $50 million due to an attack of the decentralised finance (DeFi) protocol BadgerDAO.
According to reports, the exploit targeted the Ethereum network's protocol, gaining an unjustified $120 million in assets.
The biggest purported victim of the attack, according to one Redditor, was an address that lost 896 Wrapped Bitcoin ($51 million). Celsius is thought to acquire the address "since it has interacted with other addresses known to be owned by them."
The account has a $67 million balance, $40 million of which is Celsius' named native token CEL.
The address is also said to be held by Celsius since it is connected to at least one address on Etherscan that is labelled as Celsius Network Wallet 5 and shares multiple significant transactions.
“All this means that there's a high chance that the address who lost 900 BTC was owned by Celsius. Celsius has not confirmed anything yet, so this is all speculation, for now, so we don't know for sure if Celsius was affected or not,” the user said.
The initial reports about BadgerDAO's security issue arose in early December, with the protocol officially confirming on December 1 that it has obtained several exports of unlawful withdrawals of user funds. To prevent future losses, the Badger team proceeded to look into the issue and stopped all smart contracts on the protocol.
In late November, the Celsius token saw a significant decrease. CEL decreased to $3.9 the next day after reaching $4.5 on November 25. It has subsequently recovered slightly. CEL is trading around $4.00 recently, dropping about 9% over the last seven days but up about 1% over the last 14 days.
Celsius Network is a significant crypto lending platform that allows users to earn interest on digital assets such as Bitcoin (BTC).