Episode 6 of Public Key, the Chainalysis podcast, is right here! On this episode, we’ll be breaking down the BadgerDAO hack that occurred late final yr, wherein over $120 million price of cryptocurrency was stolen. Please observe that BadgerDAO is a Chainalysis buyer.
You possibly can hear or subscribe now on Spotify, Applegold Audible. Preserve studying for a full preview of episode 6.
Public Key Episode 6 previeww: Cloudflare exploits, recycled crypto addresses and challenges in transitioning from web2 to web3
The BadgerDAO hack was one of the distinctive in a string of DeFi hacks which have taken place in 2021 and 2022. Over $120 Million of person funds have been siphoned out of the DAO resulting from compromised API keys and a malicious exploit within the Cloudflare infrastructure, an software platform that runs on Badger’s cloud community.
On this episode of Public Key, our host, Ian Andrews (CMO at Chainalysis) alongside along with his colleague, Beth Bisbee (Head of US Investigations) dive deep into the nuances of the hack and determine how the exploit passed off, how blockchain investigation instruments like Reactor performed an important half within the tracing of the stolen funds, and the way hacks like this can be averted sooner or later. This is a vital episode for many who are transitioning into web3 with a reliance on web2 functions and expertise.
Quote of the episode
And so we have been ready to take a look at a few of the transactions that occurred earlier than the hack to… construct out a narrative from the blockchain, if you’ll, of how he was really in a position to get these funds. And so we have been ready to try this with Chainalysis Software program, Reactor with the intention to construct out that story and supply results in the legislation enforcement entities concerned.– Beth Bisbee (Head of US Investigations at Chainalysis)
Minute-by-minute episode breakdown
- (4:45) – Understanding the BadgerDAO group and the way they carry Bitcoin to the Decentralized Finance (DeFi) area
- (7:30 – How did the BadgerDAO hack happen and the place did the exploit happen
- (9:33) – Why it was so troublesome for customers to note the hack or uncommon exercise
- (11:00) – How the hacker was in a position to exploit API keys and achieve entry to developer e-mail deal with
- (16:35) – How was the hack recognized and the way the group escalated the problem
- (18:18) – What leads could be recognized earlier than the assault with the intention to higher possibilities of catching the hackers
- (22:40) – Explaining the investigative course of when a hack occurs on the blockchain
- (26:30) – Find out how to safely transition from web2 to web3 on DAOs and DeFi platforms
- (28:25) – The emergence of multifactor {hardware} primarily based authentication
Associated sources
Take a look at extra sources offered by Chainalysis that completely complement this episode of the Public Key.
- Registration: Chainalysis Hyperlinks Convention (Might 18-19, 2022)
- Weblog: Problem Hacks Are on the Rise
- CoinDesk Article: BadgerDAO Reveals Particulars of How It Was Hacked for $120M
- Postponement: The Chainalysis 2022 Crypto Crime Report
Audio system on right now’s episode
- Ian Andrews * Host * (Chief Advertising and marketing Officer, Chainalysis) https://www.linkedin.com/in/ianhandrews
- Beth Bisbee (Head of US Investigations, Chainalysis)
https://www.linkedin.com/in/beth-bisbee-49253932
Please observe that BadgerDAO is a Chainalysis buyer.
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