BadgerDAO, a Bitcoin DeFi tool, suffered a major hack earlier this week, and one of the most damaged addresses, which lost approximately 900 Bitcoin, could be owned by Celsius, according to theory.
Although the popular lending platform that allows users to earn interest on their crypto deposits hasn’t confirmed the accusations, on-chain data backs up the rumors that have been circulating on social media.
The history of transactions reveals
The address identified as BadgerDAO hack’s greatest loser lost 896 Wrapped Bitcoin valued at around $51 million.
Following the exploit, claims began to circulate on social media sites such as Reddit and Twitter that the compromised address was linked to Celsius.
Indeed, an on-chain investigation exposes the victim’s transaction history with an address that has a $65,6 million balance at the time of writing, with about $40 million in Celsius’ native token.
This address interacts with one of Celsius’s primary addresses, “Celsius Network: Wallet 5,” on a frequent basis.
“All evidence indicates that Celsius was most likely the owner of the address that lost 900 BTC. Because Celsius has not verified anything yet, this is all speculation at the moment, and we have no way of knowing for certain whether Celsius was compromised or not,” the Reddit post stated.
The aftermath
The hacker stole around $120 million in user cash by hacking BadgerDAO’s front-end interface, though the decentralized autonomous organization has yet to confirm the extent of the damage.
Meanwhile, the compromised protocol ensured that the investigation would continue by pausing smart contracts to prevent future withdrawals.
“Badger has retained data forensics experts Chainalysis to investigate the full scope of the problem; authorities in the United States and Canada have been notified; and Badger is fully cooperating with external investigations while also conducting its own,” the protocol announced on Twitter.
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