Celsius Network Lost More Than $50m In BadgerDAO Attack

Another crypto platform has disclosed that it was affected by the recent cyber-attack on BadgerDAO. Celsius Network, a crypto lending protocol, is estimated to have lost more than $50m in that attack.

Proof That Supports The Claim

As widely reported on December 1, the Ethereum-built project lost an estimated $126m worth of digital assets due to the attack. A Reddit user claimed that one of the addresses affected was ripped off 897 wBTC (about $52m). This user further contended that the Celsius network is the owner of the address because of this addresses’ interaction with other addresses related to the Celsius network.

This attacked address has been in various transactions with another address containing $67m with about $40m of this balance locked with Celsius governance token, CEL. Another proof that the attacked address is owned by Celsius is that it has shared multiple transactions with various Celsius network wallet addresses, as seen on Etherscan.

Therefore, the user concluded that “it is highly likely that the attacked address is owned by Celsius. However, he was also quick to point out that the network is yet to confirm whether it owned the affected account.” When contacted by the media to speak on the information, one staff member from the network disclosed anonymously that an official statement would soon be released.

Some hours later, the network’s boss, Alex Mashinsky, confirmed that the Celsius network was indeed affected by the BadgerDAO hack. The CEO further said both firms are working to recover Celsius’s funds and ensure that the offenders are brought to book. He also said, “I want every Celsius user to keep calm. Our responsibility is to provide you with your funds even when these unpleasant situations like this one happen.”

A Brief Overview Of The BadgerDAO Attack

There were rumors of an attack on the BadgerDAO network early morning on Wednesday before the network issued an official press statement regarding the issue and confirmed the attack. Per the announcement, several unauthorized withdrawals of funds occurred on the platform on December 1.

The announcement further revealed that investigation about the issue is still ongoing, but it has temporarily suspended any smart contract transaction on the platform to mitigate against additional losses. The network’s governance token (CEL) performed excellently till late last month, when its price declined significantly.

CEL Price Action

CEL traded for $3.89 on November 26 despite trading for $4.6 the previous day. The price has been in recovery since that time. As of this writing, CEL currently trades at $4.06. It has lost over 8% in the last seven days but has gained more than 1% over the previous two weeks.

CEL price action till December 3, 2021. Source: CoinGecko

The Celsius Network has emerged as a leader in the DeFi lending space where users can earn interest because they own various virtual assets. It is now valued at $4b following the success of its series b funding in October and November, where it raised $450m and $800m in each of those months, respectively.

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