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Solana Meme Coin Bonk Suffers $20 Million Treasury Exploit

Created at 6 Jul · 9:00 PM2 sources↑ Market-relevant2 events
IN SHORT

The decentralized autonomous organization (DAO) behind the Solana-based memecoin Bonk reported that an unknown entity drained $20 million worth of tokens from its treasury via a malicious governance proposal. Law enforcement has been notified, and exchanges Upbit and Kraken have paused BONK deposits and withdrawals.

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Key Numbers

$20 millionestimated value of stolen BONK tokens
4.4 trillionBONK tokens transferred from treasury
7%BONK token price drop in 24 hours
93%BONK token price decline from all-time high

Who's Involved

BonkDAO
Decentralized autonomous organization targeted in governance attack
BONK
Solana-based meme coin affected by treasury exploit
Solana Foundation
Working with BonkDAO to manage the situation
Upbit
South Korean exchange that paused BONK deposits and withdrawals
Kraken
American exchange that paused BONK deposits and withdrawals
Bybit
Exchange linked to the funding of the attacker's wallet

↳ Why This Matters

The exploit highlights ongoing security vulnerabilities within decentralized autonomous organizations and the risks associated with memecoin treasuries, potentially impacting investor confidence in the broader crypto market.

Key facts

  • BonkDAO's treasury was exploited for approximately $20 million in BONK tokens.
  • A governance proposal titled 'Sowellian BonkDAO' facilitated the transfer of over 4.4 trillion BONK tokens.
  • The tokens were moved from the treasury to an address identified as being funded via a Bybit account.
  • Exchanges Upbit and Kraken have paused BONK deposits and withdrawals.
  • Law enforcement has been notified, and investigations are ongoing.

The BonkDAO treasury, associated with the popular Solana-based meme coin Bonk, has been the target of a malicious governance attack, resulting in the loss of approximately $20 million worth of BONK tokens. The incident occurred around 4:00 a.m. ET on Monday, when a governance proposal, 'Sowellian BonkDAO,' was passed, enabling the transfer of over 4.4 trillion BONK tokens to an address identified as 'JHvQ.' This address was reportedly funded via a Bybit account. Subsequently, these tokens were moved to another Solana address, 'eh42.' The Bonk team is collaborating with centralized exchanges, network bridges, and the Solana Foundation to address the situation, recover funds, and identify those responsible. Law enforcement has been notified. In response to the security incident, exchanges Upbit and Kraken have paused deposits and withdrawals for the BONK token. BONK's market value has seen a decline of around 7% in the past 24 hours.

Frequently asked questions

The BonkDAO treasury was drained of approximately $20 million in BONK tokens due to a malicious governance attack.

A passed governance proposal allowed for the transfer of over 4.4 trillion BONK tokens to an attacker's wallet.

South Korean exchange Upbit and American exchange Kraken have paused deposits and withdrawals for the BONK token.

The stolen BONK tokens were valued at approximately $19.3 million at the time of the exploit.

What Happens Next

01BonkDAO continues efforts to recover funds and identify perpetrators.
02Exchanges monitor the situation and may adjust their stance on BONK trading.
03Further details may emerge from law enforcement investigations.

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Cadence

How It Developed

BonkDAO's treasury was drained of $20 million in a malicious governance attack via a passed proposal.
The Bonk project informed law enforcement after the $20 million attack and is working to recover funds.
Over 4.4 trillion BONK tokens were transferred from the treasury to an address funded via a Bybit account.
Exchanges Upbit and Kraken paused BONK deposits and withdrawals.
The price of BONK dropped about 7% over 24 hours amid reports of the attack.

Sources

T1
BonkDAO reports $20M theft from ‘malicious governance proposal’The developers behind the memecoin project said they had informed law enforcement after the attack and were working to “recover funds and identify those responsible.”Cointelegraph
T1
Solana Meme Coin Bonk Treasury Drained of $20 Million in 'Malicious' Governance AttackDecrypt

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