Build Finance – a DAO (decentralized autonomous organization) seems to have been fully emptied following an intimidating takeover on the behalf of an attacker who gained control over the platform by voting himself. The company is controlled and owned on the behalf of the community.
It produces funds along with doing the management of the DeFi products that are owned by the community. It participates in the provision of shared services, assisting oversee the product bodies, sourcing capital, organizing teams, as well as categorizing business ideas. Putting it in simple words, the platform is a DAO that offers services for the rest of the DAOs.
Complete takeover of Build Finance treasury
As per a tweet thread that Build Finance posted on its official Twitter account, a malicious attacker – who submitted a governance proposal to control the token contract BUILD – took over the DAO’s governance. The tweet noted that a considerable amount of votes turned out to be the reason for his takeover. It seems that the respective event was not the initial attempt as previously an attacker did not have adequate funding thus failed to do so.
Also read:The attacker (showing “Suho.eth” – an ENS domain) advanced and tried again with having success, as revealed by the tweet. The tweet further mentioned that he has total dominance over the treasury, minting, as well as the governance contract as none of the segments of its chief infrastructure is in control of the DAO anymore. The respective post moved on to advise that the consumers should not purchase BUILD tokens from any platform.
Emptied balancer as well as liquidity pools of Uniswap
The attacker effectively invaded the DAO treasury with the help of the governance model of Build DAO, as it appears that he conveniently came to power by gathering substantial governance tokens and the DAO does not have effective apparatus to shield against this type of power grab. After gaining power, the attacker minted 1,107,600 BUILD (approximately $1.7M) as well as withdrew funds in a huge amount from Uniswap DEXs as well as Balancer-based liquidity pools through the governance contract.
He then took charge of the pools of Balancer through governance contract, draining the rest of the funds in METRIC tokens (counting up to 130,000). The respective attacker attempted to trade the looted tokens and extreme pressure was built on the digital assets. Consequently, the BUILD token’s market value plummeted to nearly $1.5.
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