Celsius Reportedly Affected in Exploit of DeFi Protocol BadgerDAO

Hackers stole $115 million worth of wrapped bitcoin from users of the bitcoin-focused BadgerDAO on Wednesday.

article-image

Source: Blockworks

share

key takeaways

  • Hackers stole $115 million from users of the bitcoin-focused Badger DAO on Wednesday
  • Like many crypto companies, Celsius is not FDIC insured nor a federally regulated bank

The Wednesday $115 million hack to the bitcoin-focused DeFi protocol BadgerDAO appears to have impacted Celsius Network to the tune of approximately $54 million, according to on-chain data from etherscan.

While the on-chain data does not definitively prove that the funds belonged to the crypto lender, the wallet that was impacted was seeded by a series of wallets that originates with Celsius.

Initial reports showed that a wallet linked to Celsius had 896 wrapped bitcoins stolen.

Celsius’ losses at this time could amount to approximately $54 million USD, a little under one-half of the total amount stolen from BadgerDAO.

Loading Tweet..

When Blockworks reached out to Celsius CEO Alex Mashinsky for comment on Thursday evening he said the company would provide a statement on Friday, but did not comment further.

On Friday, Celsius released a series of Tweets, addressing the hack. “No Celsius client and user assets were affected,” the company wrote.

BadgerDAO has hired data forensic experts Chainalysis to investigate the hack and is progressing with internal and external investigations, according to a recent tweet.

Loading Tweet..

“As of right now, we have nothing further to share outside of the recent post. We will continue to provide updates as they come available,” a BadgerDAO admin said to Blockworks Thursday night.

As Blockworks reported early Thursday, the hack on BadgerDAO didn’t appear to be an attack on the protocol itself. Instead, the hackers went after the web interface connecting the protocol to the users’ wallets. 

Many BadgerDAO Discord users reported that when their wallets interacted with BadgerDAO, they were hit with requests for additional permissions and then transferred tokens to wallets controlled by the hackers, Blockworks reported.

As with many cryptocurrency companies, neither BadgerDAO nor Celsius are federally regulated banks or FDIC-insured.

It’s been a wild two weeks for Celsius. On Nov. 24, the company announced it had expanded its Series B From $400 million to an oversubscribed $750 million. On Nov. 29, the company suspended its Chief Financial Officer Yaron Shalem due to external fraud and sexual assault allegations.

This story was updated on Friday, Dec. 3, 2021, at 2:01 pm ET, to include the latest comments from Celsius on Twitter.


Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million