BEAN bleeds 88% overnight following $182 million DeFi exploit

An Ethereum-based stablecoin protocol was drained of $182 million in a massive DeFi exploit. Beanstalk’s stablecoin BEAN collapsed in the aftermath of the hack, posting a 88% drop in price overnight. 

BEAN suffers six figure DeFi hack, loses 88% value 

Beanstalk Farms, a credit-based stablecoin, lost $182 million of its collateral in a massive security breach. The flash loan attack drained the stablecoin’s total reserve and triggered a collapse. 

Two suspicious governance proposals, BIP-18 and BIP-19, were issued by the exploiter on April 16, 2022. Coupled with a security breach, these proposals maliciously drained BEAN’s reserves. The attacker took $1 billion in a flash loan from the Aave protocol in DAI, USDC and USDT. 

The six-figure DeFi exploit has left the protocol with empty reserves. Proponents believe that there is a low likelihood of lost users’ funds being reinstated with zero financial backing. 

Once the loan was approved, it took control of 67% of the protocol’s governance and started approving their own proposals. 

The proposals asked Beanstalk to donate funds to Ukraine. However, it was accompanied by a malicious rider that ultimately drained funds from Beanstalk’s reserves. 

PeckShield, a leading blockchain security firm, flagged the attack on Twitter and identified $80 million in lost assets, while Beanstalk’s loss was more significant than the estimate. According to BlockSec, a crypto smart contract auditor believes, the hack went down at 12:24 pm UTC. 

Beanstalk Farms’ stablecoin BEAN has plummeted 88% overnight at press time. The protocol’s market capitalization is down to $12.6 million as traders continue to dump BEAN and recover funds on Uniswap.