Stablecoin project Beanstalk has been the target of an attack that reportedly has seen over $180 million pilfered.
In a tweet yesterday, Beanstalk said they had “suffered an exploit” without providing too many details.
Beanstalk suffered an exploit today.
The Beanstalk Farms team is investigating the attack and will make an announcement to the community as soon as possible.
— Beanstalk Farms (@BeanstalkFarms) April 17, 2022
Beanstalk went on to state:
“We’re engaging all efforts to try to move forward. As a decentralized project, we are asking the DeFi community and experts in chain analytics to help us limit the exploiter’s ability to withdraw funds via CEXes. If the exploiter is open to a discussion, we are as well.”
Revealed in late 2021, Beanstalk is a “decentralized credit-based stablecoin protocol that is built on Ethereum. ” The premise is that other stablecoins have a “problem” – centralization and collateral requirements.”
The Guardian reported that a Beanstalk founder explained the extent of the exploit as follows:
“We are fucked. This project has not had any venture backing, so it is highly unlikely there is any sort of bailout coming.”
While it is unclear if Beanstalk will be able to recoup any of the loss, this is just the latest in the ongoing saga of crypto theft due to exploits, hacks, inside jobs etc. It appears that Beasnstalks challenge was not collateral nor centralization but something else.