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ALBT token drops by 51% following $5 mn token theft

Although AllianceBlock claims that the hack did not compromise its smart contracts, it has failed to ease the concerns of investors

Shashank Bhardwaj
Published: Feb 6, 2023 04:52:15 PM IST

ALBT token drops by 51% following  mn token theftImage: Shutterstock

A recent announcement by AllianceBlock revealed that a group of hackers had successfully stolen a significant amount of AllianceBlock (ALBT) tokens from Bonq, a decentralised borrowing protocol.

The total value of the stolen tokens has been estimated to be around $5 million, causing concern and disappointment among the platform's users and the wider crypto community.

In response to the attack, AllianceBlock has temporarily stopped all operations on its bridge.

The exploit took place in the afternoon on Wednesday and involved a Polygon wallet accessing 112 million ALBT tokens and transferring them from the Polygon blockchain to the Ethereum blockchain. In addition to the ALBT tokens, the hacker also acquired 500,000 USDC by selling off Bonq euro (BEUR) tokens.

The teams of AllianceBlock and Bonq, along with their connected partners, are taking action to rectify the situation by minting new ALBT tokens and distributing them to the wallets that were impacted by the attack. They are also in the process of removing the liquidity from the system and have temporarily suspended all trading on exchanges.

Although AllianceBlock claims that the hack did not compromise its smart contracts, it has failed to ease the concerns of investors.

The value of the ALBT token dropped sharply by 51 percent after the incident, according to CoinMarketCap. This has caused widespread concern among the holders of the token and the wider crypto community.

The attacker during the oracle hack also minted 100 million BEUR tokens, causing their value to drop close to zero. This resulted in the liquidation of the ALBT holdings that were impacted, as explained by a representative from Bonq.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash