Update. Celsius Network CEO, Alex Mashinsky, confirmed in a live AMA that the company lost funds in the BadgerDAO hack.
Celsius Network, a cryptocurrency earning and borrowing platform, has come under fire after users found one of the largest wallets suffered in a hack attack was linked to Celsius, Blockworks first reported, citing a Twitter user @BigTimeCali. According to the user, Celsius Network used BadgerDAO with the goal of arbitrage to "take advantage of price difference to earn a profit."
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"To compete with other crypto lenders, they offer high earn rates. Eventually, this leads to facing excessive risk like in the case with yield farming," @BigTimeCali tweeted.
The wallet allegedly linked to Celsius Network had over 896 wrapped BTCs before the attack. The US-based cryptocurrency company contacted with the affected wallet prior to the hack, according to on-chain data. However, Celsius has not made any official statements on the case as of press time.
iHodl earlier reported that the so-called BadgerDAO protocol focused on bitcoin lenders lost over $100 million as a result of the front end exploit. According to reports, BadgerDAO's API key for Cloudflare was compromised. The project's developers said they are already investigating the incident.
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