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.


Source: Blockworks


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.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

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

Research Report Cover Vertex.jpg


The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.


Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral



Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM


The side events were the places to be at Consensus 2024, according to attendees


Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them


I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right


Also, the ETF hype train can count out at least one member