Celsius Network confirms it lost money in the BadgerDAO DeFi hack

Startups • December 3, 2021, 1:24PM EST
UPDATED: December 3, 2021, 1:44PM EST
The Block

Crypto lending company Celsius Network CEO Alex Mashinsky confirmed in a live stream today that the company lost funds in the BadgerDAO hack earlier this week.

"We are working with Badger to recover all those funds. We are collaborating with them on the investigation," Mashinksy said.

"I want to make sure every Celsius user understands, when things like this happen, we are the ones who lose, you don't lose because it's our job to recover the funds, it's our job to work with these funds, to select good projects versus bad projects and everything else," he added.

According to speculators on Twitter looking at on-chain transactions, Celsius Network may have lost around $50 million as a result of the exploit.

The BadgerDAO exploit was a front-end attack where attackers managed to take some control of the main website. When users went to make transactions, the attacker changed the nature of the transactions to steal the funds. In total, the protocol lost $120 million.

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Tim is the Editor-In-Chief of The Block. He writes about the evolution of crypto technology and the people who are at the forefront of it. He provided exclusive, source-based insights into the launches of the Bitcoin and Ethereum ETFs, crypto sales by the FTX Estate and the Trump-linked World Liberty Financial project. Prior to joining The Block, Tim was a news editor at Decrypt. He earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.

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