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Beanstalk Flash Loan - My wallet is lighter with $32,000

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Written by   1008
1 month ago

This is painful to talk about but hey ... welcome to the crypto life! Some will say no pain - no gain, but this kind of events have nothing with do with the level of risk in an investment. Beanstalk was hacked and the ETH-based stablecoin protocol lost $182 million to exploit! 

According to PeckShield, the hacker stole $80 million, funneled through the crypto mixer Tornado Cash. The flash loan attack also faked a protocol improvement proposal to gift funds held in the Beanstalk treasury to an Ukraine Aid charity

I was affected by the Harvest Finance hack and the Pickle Finance exploit but this time the bag value went from 32,000 USD to zero! I discovered Bean Money in November 2021, and I was impressed by this new decentralized credit based stablecoin protocol built on Ethereum. The first Beanstalk product is $BEAN, an ERC-20 USD stablecoin with a variety of passive and active opportunities to earn interest. The unique feature of Beanstalk Protocol is the use of credit instead of collateral requirements, which creates price stability. My review is still up and you can read it at - Dreaming at Bean Money while Climbing on the Beanstalk Protocol

Time goes quicker in the Cryptoverse had a fun approach when the project celebrated 100 days! Many started their climb up the beanstalk, in the search of a golden goose, and this created an organic community. Me, you and you as well ... we are Jacktoshi! We are those who went up the beanstalk and reached the DeFi clouds. Have a laugh while reading Climbing up the Beanstalk - 100 days for Jacktoshi and the Golden Beans

The true story and my Beanstalk adventure started in March, when a poker tournament was organized. I will write the tension and success I experienced that night in a different article, because now the focus is on the hack and on the huge amount of money that was stolen. Beanstalk Farms Poker Tournament - Fill your bag with $BEANS and $PODS

The important aspect is that the prize pool had over 600,000 $PODS, which in time would have become $600,000 worth of $BEANS. The top 20 players received prizes, with a minimum of 7,641 $PODS for the player that will finish 20th in the tournament. 

I had an amazing run and even if I was top many times during the night... I finished 5th. My prize was no less than 32,983 PODS, and all I could say was "are you fu*king kidding me? This can become $32,983 when my turn comes! WOW!" 

All I had to do was to wait in line for my pods to become BEANS! I had 627.2 million pods ahead to transform but I was ready to wait. Didn't want to swap PODS for 20-30% of the BEANS value so the long wait was the only option! Until the sh*t happened! 

On the 17th of April 2022 ... all the magic beans are gone! A flaw in the BeanstalkFarms protocol allowed the hacker(s) to steal 24,830 ETH and to donate $250,00 to Ukraine. The total lost was over $182 million and $BEAN went from $1 to zero that night! 

It looks like the flaw was there, and someone just took advantage of it! The auditor missed the code flaw as well, and the team emergency preparation was equal to none!

At least Proof of Beauty & HistoriansDAO are creating beautiful NFTs using the transaction #HASH! The Proof of Beauty NFT can be admired in this tweet!

The team apologized for the lost money and the suffering, but highlighted that the protocol had no backing ... making the recovery of funds highly unlikely. 

The three leaders and creators (Benjamin Weintraub, Brendan Sanderson and Michael Montoya) disclosed their identities because of the events. They wanted to prove that they had nothing to do with the attack on Beanstalk, no involvement and no prior knowledge. They said they lost their assets, like all other investors. The FBI was contacted and the team will fully cooperate with them to track down the perpetrators, and hopefully recover everything that was stolen. The $76 million in non-Beanstalk assets stolen from the liquidity pools where giving value to $BEANS, therefore the token has no value after the hack. Jack the Hacker cut the Beanstalk! The golden goose is dead!   

Beanstalk was designed and implemented as an open-source, decentralized system that could be improved over time via on-chain governance. The same governance procedure that facilitated the adoption and implementation of over a dozen BIPs since launch, which have dramatically improved Beanstalk, was ultimately used to attack it. 

I will not lose my faith in Beanstalk! The vibrant community and the team can recover after this unfortunate event!  The Beanstalk are so unique and innovative that the Cryptoverse needs it! Let's show our support and make Beanstalk great again!

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Written by   1008
1 month ago
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Comments

This is very sad news. But one day you will win.

$ 0.00
3 weeks ago

Bloody heart breaking chap. Glad you’re taking it like a champ, onward and upward!

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1 month ago

Been in the game for so long that I become unbreakable. Lost it all not once, not twice.. but three times so I know I will bounce back

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1 month ago

If anyone can bounce back, it is you :)

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1 month ago

Summer 2022 will be great

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1 month ago

Am pleased I managed to visit your article so far thank you for the support you have shown to me . Well sir never feel sad cause you gonna make more

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1 month ago

Sorry to hear about your loss. Trust you will bounce back!

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1 month ago

Crypto is actually no pain no gain cause something like this happened to my brother who is also actively involved in crypto trading.. I'm so sorry bro

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1 month ago

It's just like someone robbed a bank, right? Except for bank money usually have insurance, crypto doesn't. This is the main obstacle for adoption imo. Sorry for your loss, I'm sure you are already back on your feet.

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1 month ago

Haha... and banks have locks

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1 month ago

I hope they can somehow recovery from this hack

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1 month ago

Awwww, hope they can still recover it. But we're in crypto space, I hope it still possible.

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1 month ago

Damn, can't believe this can happen anytime with our money in crypto

I feel sad to hear about your loss

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1 month ago

Its fine 🙂

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1 month ago
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1 month ago

This is so heartbreaking, I can't even imagine such a loss in one day within a twinkle of an eye. Please, be of good courage because I know you will certainly bounce back.

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1 month ago

I always bounce back

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1 month ago

This just sucks royally. Very sorry that it happened, and that you too fell victim.

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1 month ago

I still have the pods but value is zero

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1 month ago

Can't tell which blockchain is gonna be the next target for hackers

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1 month ago

What! What a lost, am sorry for your lost and I hope they can track the hackers and recover some of the money

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1 month ago

Don't think they can be tracked

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1 month ago

Holy moly that is a lot of money, I'm sorry you lost that much man!

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1 month ago

I've read every details, and wow.. that's huge money gone waste 🤦 the beauty of crypto life indeed. It would be better if your Pods has transformed into Beans before the exploit.

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1 month ago

What goes round comes around as JT would say

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1 month ago

Yep for sure.

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1 month ago

That's too huge.. Money becomes ash.. Such as waste..

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1 month ago

Its all part of the game. Not stressed about it as easy come, easy gone

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1 month ago