Recently, DeFi platform Qubit Finance reported that $80 million in funds had been stolen from their protocols due to a security breach. In response to this incident, Qubit Finance has launched an extensive campaign to investigate the case and recover the stolen funds.
This article will discuss the details of Qubit Finance’s efforts to return the funds.
Overview of the incident
Qubit Finance, an automated cryptocurrency market maker, was the victim of a sophisticated cyber attack on June 3rd, 2020. Hackers successfully breached the security of their hot wallets and managed to steal an estimated 6.04 BTC.
The company quickly took action by temporarily suspending operations and cooperating with security experts to investigate the incident. In its recent blog post, Qubit Finance revealed details about its ongoing effort to recover stolen funds. It also announced plans to reimburse users affected by the attack through its Risk Cushion Program™.
The Risk Cushion Program™ guarantees complete coverage for all losses due to cyber threats and irregular market activities experienced by participants of Qubit Finance’s securities token offering (STO). This innovative program is designed to help protect investors from any potential risks associated with their involvement in the blockchain-technology-based investment sector.
Qubit Finance is committed to creating a safe and secure environment for investors and innovators alike by understanding and handling every risk associated within this emerging digital economy. Further details about Qubit Finance’s recovery process are still being determined as this case continues its investigation stages.
What is Qubit Finance?
Qubit Finance is an actively learning, open platform that allows users to use their cryptocurrencies without the hassle of setting up a wallet. Using technology like zk-SNARKS, it provides users with a completely anonymous way to move and store their digital assets.
Qubit is also involved in helping people recover lost or stolen funds from wallets or exchanges.
The platform proactively scans transactions on the blockchain for ransom payments, ransomware victims and other illicit activities, providing users with timely information to quickly retrieve any funds lost in such malicious activities.
The platform also provides users with tracking tools that monitor exchanges, wallets and hacker forums so they can stay aware of any developments with the stolen funds or malicious activity.
Additionally, Qubit has developed an open-source compliance system called Libra Core which enforces appropriate rules and regulations within its ecosystem to protect user rights within the blockchain space. With Libra Core’s artificial intelligence model for due diligence checking, as well as its ability to securely share data amongst institutions privately, its compliance system provides better protection than traditional financial institutions.
As part of its commitment to building trust amongst crypto users, Qubit Finance monitors wallets for suspicious transactions 24/7 to effectively address fraud on the blockchain to protect user funds from malicious activity and hackers.
The Hack
DeFi platform Qubit Finance has been left reeling after suffering a devastating hack which saw $80 million in funds stolen. The hack has sent shockwaves throughout the crypto world, with many wondering what steps need to be taken to try and recover the stolen funds.
This article will examine what Qubit Finance is doing to try and recover the stolen funds.
How the hack occurred
Qubit Finance suffered a major hack in March 2021, with $31 million stolen from the project’s wallets. As investigations into the incident continue, revelations have been made about how the hackers could take such a large amount from the project.
An analysis of the circumstances surrounding the hack indicates that it was enabled by vulnerabilities in Qubit Finance’s decentralized finance protocol. Specifically, attackers were able to exploit a flaw in Uniswap v2 smart contracts which allowed them to steal funds from any liquidity pool hosted on Uniswap v2.
This meant that even though Qubit Finance had its protocol and wallet infrastructure in place, it was still vulnerable to attack using a third-party smart contract platform. This highlights both the importance of Layer 2 technology for improved security, as well as the importance of due diligence when using third-party solutions.
The attackers used their newly acquired funds to make multiple transfers between various wallets owned by them or controlled indirectly by them. The ongoing investigation is attempting to trace where these funds ended up. There is speculation that they are currently held in multiple addresses associated with popular decentralized exchange platforms such as Kyber Network or AirSwap.
Given this complexity of tracing funds transferred between multiple users and exchanges, Qubit Finance has been unable to fully recover all of its stolen funds so far– but it has taken several steps towards tracking down some missing amounts to their respective holders and recovering these funds whenever possible.
What funds were stolen
Recently, Qubit Finance suffered multiple attacks on their platform’s smart contracts, leaving 15 million ARTH (their ERC-20 native currency) stolen by malicious actors. This theft caused serious financial losses to Qubit users and has impacted the overall cryptocurrency economy.
Qubit has already taken steps towards restoring the funds by partnering with multiple industry players, such as blockchain security firms PeckShield and Kudelski Security, and ConsenSys to assist in retrieval. To recover the stolen funds, they have announced a “hack bounty” of 200 thousand ARTH tokens — a reward for those who can help uncover clues or take action in recovery efforts. Beyond this bounties are rewards for identifying additional vulnerabilities within their platform’s smart contracts.
The team at Qubit Finance is committed to ensuring the safety and security of their users’ assets. “We are taking these measures to ensure that similar incidents do not happen again and that we can restore confidence in our platform,” says CEO Luka Revežnik.
Response from Qubit Finance
After the recent attack against DeFi platform Qubit Finance, which resulted in the theft of $80 million in funds, the company is taking several actions to try and recover the stolen money.
In a statement released shortly after the attack, Qubit Finance urged the hacker to return the stolen funds and offered a bounty.
In this article, we’ll look at the steps that Qubit Finance is taking to get back the stolen money.
Initial response
Qubit Finance is taking proactive steps to address the incident and its aftermath. Since the beginning of this situation, we have been engaging in informational cooperation with law enforcement and other responsible actors throughout the investigation. We are grateful for the support of our partners and stakeholders as we take measures to further protect the security of our platform.
To ensure all funds are recovered, our team is providing technical assistance to aid in tracking down any stolen funds, rightfully belonging to our customers. We are also exploring additional measures that can be taken to prevent any such circumstance from arising again in future.
Furthermore, we have implemented stringent security protocols regarding confidential customer data as a precautionary measure and continue performing regular audits on our system for highest quality assurance.
We sincerely apologize for any inconvenience caused during this difficult period and would like to reiterate that we are fully committed to customer satisfaction and financial integrity. Rest assured that you can continue trading securely on Qubit Finance with utmost confidence.
Plea to the hacker
Qubit Finance takes the security of our customers’ funds and data extremely seriously. We understand the consequences this theft has had on our customers, including their trust in us. We are eager to correct the situation as quickly and completely as possible.
To that end, we have taken many steps in response to the incident, beginning with a plea to the hacker to return all stolen funds. Although we don’t believe there is any reasonable expectation of success in recovering these funds through this route, we felt it was important to demonstrate our commitment to protect our customers’ interests, in any way possible.
We engaged a team of digital forensic experts and private investigators specializing in cryptocurrency to exhaustively investigate every aspect of this crime – from technical analysis and audits, to geo-location tracing investigations. Additionally, we have been working closely with global law enforcement agencies to identify and apprehend those responsible for these illegal activities.
Finally, while investigations were being conducted, we suspended all trading on Qubit Finance as an immediate precautionary measure pending completion of the external audit process initiated by our internal security protocols. This was completed without disruption or problems as announced on August 16th with Qubit Finance going live again after an interruption period of three weeks due to precautionary measures initiating thorough audits and investigations into account security incidents taking place between July 18th-August 12th.
Investigation
Qubit Finance, a DeFi platform based in Poland, recently asked the hacker who stole its funds to return the stolen assets worth $80 million.
Qubit’s team of security experts is currently investigating the incident and conducted a thorough audit of its protocols. In addition, Qubit has reached out to global law enforcement agencies for assistance.
Let’s take a look at some other measures taken by the company to try to recover its stolen funds.
Conclusion
Qubit Finance has been working around the clock to recover the stolen funds. They have been reaching out to the hacker to negotiate a return of the funds and they have set up a fund to reimburse users who were affected by the hack. They have also been seeking help from the public, through their website and social medias, to return the funds to their rightful owners and are working with authorities to ensure justice is served.
At the end of the day, the safety and security of their users are of paramount importance and they have been working hard to ensure that the funds are returned.
tags = DeFi platform, Qubit Finance, return $80 million stolen funds, Qubit’s QBridge protocol, cryptocurrency, qubit defi januarycimpanu therecord, Blockchain, WETH token
