Ankr posted on Twitter that the protocol will utilize reserves for the compensation of the entities providing liquidity to the $aBNBc pools. Ankr has begun establishing a series of those who are influenced in this respect. It guaranteed the safety of the infrastructure services and staked assets on Ankr Staking. Ankr DeFi Protocol was hacked on the 1st of December and the hacker managed to steal 15M BUSD.

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Ankr to Compensate Influenced $aBNBc Liquidity Providers with Its Reserves

Apart from that, Ankr pointed out that it was aware of the fact that diluted aBNBc got hypothetically traded following the exploit. Nonetheless, Ankr was just able to offer compensation to the most vulnerable among liquidity providers. As per “PeckShield,” the hacker has recently started transacting the funds stolen from Ankr.

The hacker has been attempting to transfer the Ethereum assets into the crypto mixer Tornado Cash. He targeted the aBNBc contract at Ankr and minted up to 10T aBNBc. Just after that, a 50% drop was witnessed in the price of aBNBc due to the incident. The exploiter used just 10 BNB to make $15.5M. Furthermore, the stolen 183,885 aBNBc were utilized by the attacker to borrow almost $16M from Helio Money. Ultimately, the bad actor sold 16M HAY, earning 15.5M worth of BUSD.

CZ Announces Halting $3M in Crypto Deposited by the Exploiter

In this respect, the CEO of Binance “Changpeng Zhao” (or CZ) tweeted expressing that his crypto exchange was mindful of the exploit. He added that the initial analysis indicates a possible hack of the developer's private key. In Zhao’s words, the smart contract was exploited by the attacker to carry out that act. Furthermore, Binance CEO announced that the crypto platform halted crypto assets of $3M which were transferred by the hacker.

The team of Ankr is operating to resolve the matter since it confirmed the exploit. For this, it is examining the liquidity providers along with exchanges and protocols backing aBNBb or aBNBc. Furthermore, the team is evaluating the collateral pools of aBNBc, taking into account Helio and Midas.

According to a Twitter post by Ankr, it is contemplating buying $5M BNB worth to deal with impacted liquidity providers’ compensation. It also revealed that it recognized the involvement of a few consumers in arbitrages for gains from this exploit. Nonetheless, it confirmed that no rewards would be offered to them.