Approximately $470,000 was lost in the attack.
Key Takeaways
Build Finance DAO was targeted by a governance attack this week that allowed the perpetrator to mint and sell tokens.
The attacker likely gained the equivalent of 160 ETH or $470,000 from the various tokens that were stolen.
Build Finance’s BUILD token has been compromised but it claims its METRIC token and Metric exchange remain secure.
Build Finance DAO was the target of a governance takeover this week, according to a Twitter announcement from the project.
Build Finance DAO AttackedDecentralized protocol Build Finance suffered a governance attack this week, losing custody of its treasury funds in the process.
As a decentralized autonomous organization (DAO), Build Finance allows token holders to have input on spending decisions around its cryptocurrency-based venture building platform. However, that ability ultimately allowed the attacker to take control of Build Finance’s token contract.
The attacker put forward a proposal that granted themselves control and had enough tokens to vote for the proposal to be passed. “There were not enough countervotes to prevent the takeover,” Build Finance says.
Next, the perpetrator minted and sold various tokens by leveraging smart contracts and by draining funds from liquidity pools on DeFi platforms such as Balancer and Uniswap.
Though various tokens were stolen and minted, The Block estimates that the attacker gained the equivalent of 160 ETH ($470,000) overall.
Build Finance says that the attacker now has “full control of the governance, contract, minting keys, and treasury” and warned users not to buy BUILD tokens on any platform. It adds that the attacker is not cooperating with the project, nor are they returning funds.
Project Survives Despite AttackDespite issues with the BUILD token, Build Finance says that its METRIC tokens are secure. However, the token underwent a supply shock and some METRIC tokens could still be under the control of malicious actors.
The attacker cannot control the project’s METRIC token or its Metric exchange, Build Finance says. The project expects to continue operating and will discuss future plans with the community.
METRIC’s value is up 73% over the past 24 hours, while BUILD’s value is up 18% over the past 24 hours.
Build Finance is one of many DeFi projects that have been attacked in recent months. Notably, two Binance Smart Chain and Ethereum projects were attacked for $14.4 million last week.
A recent report from Elliptic estimates that at least $12 billion was stolen from DeFi projects between 2020 and 2021.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
BSC, Ethereum DeFi Projects Hit in $14.4M Hack
An unknown attacker targeted two crypto projects, the Binance Smart Chain-based protocol Dego Finance and Ethereum-based GameFi project Cocos-BCX last night, making off with about $14.4 million worth of digital…
Elliptic Estimates $12B Lost to DeFi Exploits
News
Nov. 18, 2021
Crypto analytics firm Elliptic has published a new report suggesting that the DeFi sector has seen $12 billion in losses over the past two years. Most Theft Took Place This…
Wormhole Bridge Attacked for $322M
News
Feb. 2, 2022
An attacker has exploited the bridge protocol Wormhole for $322 million of ETH, according to various reports. Attack Estimated Above 120,000 ETH Wormhole has placed the value of the attack…
