However, the bZx team, which was presenting at ETHDenver at the time of the attack, says that although an exploit happened, it has been impossible to determine exactly how much was taken.
Indeed, "due to the complexity of the transaction, providing a comprehensive accounting of the losses will require additional time," a tweet from the company's unverified Twitter account explained. A more detailed report from the company is expected today at 17.00 MST.
TrustNodes reported that "bZx is to diversify its price sources through Chainlink, an ostensibly decentralized oracle feed" in order to prevent further exploitations from taking place.
"We have been chatting with the team yesterday. Tom and Kyle (founders) met Sergey several times before. We will integrate ChainLink," a representative from bZx told the publication.
" No lender will be affected by the attack."
The company was also quick to point out that the exploitation did not affect any other users on the platform: "No lender will be affected by the attack," bZx tweeted.
5/ We will be issuing a more detailed post-mortem as soon as possible. Right now, we wanted to simply reassure users that the funds are in fact safe. No lender will be affected by the attack. Lastly, we apologize to our traders who have come to depend on our consistent up-time.
Another tweet by the platform explained that "from the perspective of the protocol, someone simply took out a loan. From the perspective of the lender, this loan is like any other."
Still, bZx reported on Saturday that "right now there has been a panic and a run on the iETH [token] supply based on the idea that there are losses," the company explained, adding that "as long as we stand by this borrower and ensure that they continue to pay interest, the pool is healthy and will continue to be so."
4/ Right now there has been a panic and a run on the iETH supply based on the idea that there are losses. However, as long as we stand by this borrower and ensure that they continue to pay interest, the pool is healthy and will continue to be so.
However, the "run" appears to have been short-lived: after falling from $0.035 to $0.032 on the day of the attack, the value of iETH tokens had recovered to $0.033 by press time.
What happened?
According to TrustNodes, "Flash loans" are a code-based lending operation that allows traders to borrow and return funds over very short periods of time. According to Tim Ogilvie, chief executive of Staked (which bZx has a working relationship with), the exploit is essentially an expensive bug bounty for bZx.
Ogilvie explained to CoinDesk that the attacker borrowed 10,000 ETH ($2.67 million) in a flash loan. Then, the attacker sent 5,000 ETH to Compound, another DeFi protocol, and the other half to bZx.
After making these deposits, the attacker shorted "Wrapped Bitcoin" (WBTC), ERC20 token backed 1:1 with Bitcoin. Shortly after, the attacker borrowed 112 WBTC (worth $1.1 million) on Compound, and sold the borrowed WBTC on UniSwap, a third DeFi market.
Ogilvie also said that the exploitation was possible in part because bZx uses UniSwap's price feed for WBTC, though the company has denied this on Twitter: "this was not a simple Uniswap attack, and we do not use Uniswap as an oracle," a post from the company's unverified Twitter account reads.
1/ Due to the complexity of the transaction, providing a comprehensive accounting of the losses will require additional time. This was not a simple Uniswap attack, and we do not use Uniswap as an oracle.
bZx installed a contract upgrade over the weekend to prevent further exploitations from happening again: "We have deployed a contract upgrade that we believe will make our system more robust against these type of actions in the future," the company tweeted.
Long-term effects?
The longer-term effects on the platform will become clear in the coming months. In early February, bZx reported that January was "the most explosive month of growth that Fulcrum has ever seen."
"Our volumes are up 350%, hitting 9.6MM USD trading volume in a single month," the platform tweeted.
However, the bZx team, which was presenting at ETHDenver at the time of the attack, says that although an exploit happened, it has been impossible to determine exactly how much was taken.
Indeed, "due to the complexity of the transaction, providing a comprehensive accounting of the losses will require additional time," a tweet from the company's unverified Twitter account explained. A more detailed report from the company is expected today at 17.00 MST.
TrustNodes reported that "bZx is to diversify its price sources through Chainlink, an ostensibly decentralized oracle feed" in order to prevent further exploitations from taking place.
"We have been chatting with the team yesterday. Tom and Kyle (founders) met Sergey several times before. We will integrate ChainLink," a representative from bZx told the publication.
" No lender will be affected by the attack."
The company was also quick to point out that the exploitation did not affect any other users on the platform: "No lender will be affected by the attack," bZx tweeted.
5/ We will be issuing a more detailed post-mortem as soon as possible. Right now, we wanted to simply reassure users that the funds are in fact safe. No lender will be affected by the attack. Lastly, we apologize to our traders who have come to depend on our consistent up-time.
Another tweet by the platform explained that "from the perspective of the protocol, someone simply took out a loan. From the perspective of the lender, this loan is like any other."
Still, bZx reported on Saturday that "right now there has been a panic and a run on the iETH [token] supply based on the idea that there are losses," the company explained, adding that "as long as we stand by this borrower and ensure that they continue to pay interest, the pool is healthy and will continue to be so."
4/ Right now there has been a panic and a run on the iETH supply based on the idea that there are losses. However, as long as we stand by this borrower and ensure that they continue to pay interest, the pool is healthy and will continue to be so.
However, the "run" appears to have been short-lived: after falling from $0.035 to $0.032 on the day of the attack, the value of iETH tokens had recovered to $0.033 by press time.
What happened?
According to TrustNodes, "Flash loans" are a code-based lending operation that allows traders to borrow and return funds over very short periods of time. According to Tim Ogilvie, chief executive of Staked (which bZx has a working relationship with), the exploit is essentially an expensive bug bounty for bZx.
Ogilvie explained to CoinDesk that the attacker borrowed 10,000 ETH ($2.67 million) in a flash loan. Then, the attacker sent 5,000 ETH to Compound, another DeFi protocol, and the other half to bZx.
After making these deposits, the attacker shorted "Wrapped Bitcoin" (WBTC), ERC20 token backed 1:1 with Bitcoin. Shortly after, the attacker borrowed 112 WBTC (worth $1.1 million) on Compound, and sold the borrowed WBTC on UniSwap, a third DeFi market.
Ogilvie also said that the exploitation was possible in part because bZx uses UniSwap's price feed for WBTC, though the company has denied this on Twitter: "this was not a simple Uniswap attack, and we do not use Uniswap as an oracle," a post from the company's unverified Twitter account reads.
1/ Due to the complexity of the transaction, providing a comprehensive accounting of the losses will require additional time. This was not a simple Uniswap attack, and we do not use Uniswap as an oracle.
bZx installed a contract upgrade over the weekend to prevent further exploitations from happening again: "We have deployed a contract upgrade that we believe will make our system more robust against these type of actions in the future," the company tweeted.
Long-term effects?
The longer-term effects on the platform will become clear in the coming months. In early February, bZx reported that January was "the most explosive month of growth that Fulcrum has ever seen."
"Our volumes are up 350%, hitting 9.6MM USD trading volume in a single month," the platform tweeted.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
Schwab Aims Crypto Custody at Its $5 Trillion Advisor Channel by 2027
Featured Videos
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
