Qubit and Bunny Finance Unable to Recover After Recent $80M Hack

In late January of 2022, Qubit was breached by an unknown hacker who used an exploit to mint the platforms’ native token, steal 77,162 qXETH ($185M) which was used as collateral to drain Qubit’s pool out of $80M in various digital assets including wETH, USDC, BTC-B, CAKE, MDX, and BUNNY.

The hacker was able to issue fake deposits which resulted in him receiving large amounts of digital assets without putting in any of his own. 

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is DeFi in Crypto? (Explained with Animations)

SUBSCRIBE

ON YOUTUBE

This hack put the protocol at a large setback, leaving the development team no choice but to pull the plug on both the Bunny Finance and Qubit projects.

According to the team’s official post on Medium, they were not able to move forward, support the development and recovery of the Qubit and Bunny projects.

Therefore, the earlier protocols will be transformed into DAOs, with Qubits Vaults and the Bunny Pot being completely discontinued. Likewise, Qubit will launch new markets where users, whose tokens were subject to the hack, will be asked to issue an inquiry so they can be reimbursed.

Bunny Finance concluded the message, stating that all the native tokens that belonged to the team "will be locked in the smart contracts by our community and the total profit generated by this contract will move to the compensation pool."

After the hack initially happened last month, the Qubit Finance team issued a statement, offering the hacker a generous bounty in exchange for the funds. However, it seems that the person responsible did not have a change of heart, and ran off with the stash.