DeFi Platform bZx Loses Collateral After $8 Million Token Duplication Incident

Crypto collateral on DeFi lending platform bZx has dropped to its lowest level for over a year as a token duplication incident resulted in an emergency code patch and resetting of user balances. Another technical glitch has created problems for DeFi lending protocol bZx. The team responded with a breakdown of events, reassuring borrowers and The post DeFi Platform bZx Loses Collateral After $8 Million Token Duplication Incident appeared first on Coingape.

DeFi Platform bZx Loses Collateral After $8 Million Token Duplication Incident

Crypto collateral on DeFi lending platform bZx has dropped to its lowest level for over a year as a token duplication incident resulted in an emergency code patch and resetting of user balances.

Another technical glitch has created problems for DeFi lending protocol bZx. The team responded with a breakdown of events, reassuring borrowers and lenders that ‘no funds are at risk’.

A vulnerability in a token transfer function made it possible for users to call this function to create and transfer pool tokens, called iTokens on this platform, to themselves artificially inflating their balance.