Allbridge, a decentralized platform that enables users to swap tokens between multiple chains, has offered a bounty to the people behind the recent $573,000 hack on its platform. The announcement came as part of Allbridge’s ongoing efforts to recover the funds stolen from its token bridge on April 1.
Conciliatory Tone and Collaborative Approach
In a series of tweets, Allbridge took a conciliatory tone and actively monitored the wallets, transactions, and accounts linked to the hackers. The platform also enlisted the help of partners and the broader crypto community on various social media platforms, including Twitter. Additionally, Allbridge alluded to working hand in hand with lawyers and law enforcement agencies to track down the perpetrators.
The Hack
The hack, noticed by blockchain security firm Peckshield, targeted Allbridge’s BNB Chain pool. By acting as a liquidity provider and swapper, the attacker could make off with more than $282,000 in Binance USD (BUSD) and a further $290,868 in Tether (USDT) from the pool. A second blockchain security company, CertiK, provided a more detailed look into how the attacker carried out the hack. The exploiter obtained a $7.5 million BUSD flash loan, started a sequence of USDT swaps, and finally made deposits into BUSD and USDT liquidity pools. CertiK claims the scammer could exchange about $40,000 in BUSD for $789,632 in USDT by manipulating the USDT price in the pool.
Reassurance and Preventative Measures
Following the attack, Allbridge sought to reassure users that only its BNB Chain pool had been affected. However, it also announced a temporary suspension of activity on the platform to assess the extent of the exploit and prevent further attacks on its other pools. The company also built a web interface to enable liquidity providers to withdraw assets from the token bridge.
Allbridge’s Overture
At the time of writing, the hacker had not yet responded to Allbridge’s bounty offer. Allbridge remains optimistic that the collaboration of the crypto community and law enforcement agencies will eventually lead to the recovery of the stolen funds.
