It seems that problems and security breaches, when they hit a project, come in succession.

After we previously discussed on the Arab Bitcoin website the topic: bZX decentralized finance protocol hacked and thousands of dollars stolen

The bZx lending protocol was exploited for the second time only a few days after the first hack.

The estimated loss this time is 2,388 ETH, which is approximately $645,000.

bZx co-founder Kyle Kestner commented on the company’s official Telegram channel:

This attack appears to have been an attack and manipulation of an oracle

Read:Move and transfer over 34,000 BTC from whale addresses in the last 24 hours

Market watchers point out that this deal is suspicious in the latest attack.

Kestner added:

We can neutralize this as we did last time.

Early yesterday, bZx posted after its first attack that it lost around 1,193 ETH which is worth about $298,000.

In light of the latest suspicious transaction, bZx has again suspended its protocol.

According to to source The transaction occurred using express loans and trading on Synthetix, this does not affect the Synthetix system even though it involves sUSD.

On Tuesday afternoon, the bZx team said they are working with the “Chainlink” development team and are speeding up adding Oracle to their work.

bZx team wrote in Tweetthe following:

After adding this, we’ll go online with very limited functionality:

Lending, unlocking, closing positions/loans.

No new jobs and new loans will be available.

hack mechanism?

Here is the apparent mechanism of the attack, as explained by Larry Cermak, director of Block Research:

The attacker took out a quick loan of 7,500 ETH, bought 3,518 ETH of SUSD for nearly $1 and later deposited it to bZx as collateral.

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He then used 900 ETH to market the sUSD purchase on Kyber and Uniswap and thus manipulated the SUSD price by more than $2.

This allowed the attacker to take out a larger loan than he was supposed to because the collateral seemed larger than him.

With these collateral, the attacker borrowed another 6,791 ETH on bZx and used it (plus the remaining balance of ETH) to pay off the original flash loan.

Read:A Trader Makes $550,000 In 30 Minutes After Announcing BZRX Listing On Uniswap

In the end, the attacker netted 2,388 ETH (around $645,000) while the BZx protocol lost about $1.8 million while the sUSD pool earned about $1.1 million.

Robert Leschner, founder of a rival DeFi lending protocol to bZx, said:

Security is the top priority of a financial product.

The bZx team has repeatedly proven that it is unable to protect users’ funds and should immediately halt operations until the system is fully reviewed.

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Hacking a digital currency trading platform and stealing most of the users’ money!