A few days ago, it was reported by Cryptopress.news that the bZx DeFi protocol has been compromised. The hacker behind the exploit managed to get away with 2,300 ETH through manipulations of crypto loans.

Per an in-depth analysis of the first attack, the transaction with which the attacker opened the leverage trade should have been prevented by safety checks. Unfortunately, those checks did not function due to a bug in bZx’s smart contract. However, the team behind bZx protocol said the bug has been fixed.

According to reports, the bZx protocol has suffered a second attack on February 18. bZx posted on twitter that it has hit the pause button on the protocol again due to suspicious transactions.

We have hit the pause button on the protocol again in light of suspicious transactions using flash loans and trading on Synthetix. — bZx (@bzxHQ) February 18, 2020

The nature of this new attack which led to the loss of an estimated 2,388 ETH, is still largely unclear. However, a message from bZx’s CBO and operations lead, Kyle Kistner, in the project’s official Telegram group indicate that it was an oracle manipulation attack. Oracles provide external data to on-chain applications and they are normally centralized companies.

According to Kistner, the team can neutralize the hack and prevent the loss of user’s funds like they did during the first hack. He further mentioned that, the protocol’s developers will switch to oracles based on the Chainlink protocols, which seems much safer.

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