Ethereum-based stablecoin protocol Beanstalk loses more than $80 million to exploit

Beanstalk, a credit-focused stablecoin protocol built on Ethereum, was exploited Sunday morning.

The attacker obtained more than $80 million worth of crypto, including 24,830 ETH — an amount worth roughly $75.8 million as of press time. The remainder of the exploited funds were in the form of drained liquidity connected to the protocol’s governance token.

Transaction data indicates that the exploiter has since begun moving funds to Tornado, an Ethereum-based mixer that obfuscates the source of funds that move through it. 

As for how the exploit was carried out, signs indicate that the exploiter used an accumulation of governance tokens — obtained through a flash loan —  to create a fake protocol improvement proposal to gift funds held in the protocol to an address used to raise donations for the government of Ukraine. 

This is a developing story and will be updated with more information.

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