An anonymous wallet spent $4.4 million buying BONK tokens over two days, then used that stash to proceed with a governance vote that allowed it to drain $21.2 million from the BonkDAO treasury.
The incident, which saw the attacker walk away with a profit of $16.8 million, divided the cryptocurrency community between those who called it a rip-off and those who insist the DAO did exactly what it was created to do.
How did the vote go?
According to blockchain analytics platform Lookonchain, preparations are underway for the heist He started On June 30 when the attacker made a proposal asking BonkDAO to transfer 4.426 trillion BONK, worth about $21.2 million, to the wallet they controlled. For this proposal to pass, it had to be backed by at least 1% of BONK’s supply, which, according to CoinGecko data, amounts to just under 88 trillion tokens.
Then, as of around July 4, they bought 882.285 billion BONK on Bybit and Binance, an amount that was enough to settle the 1% requirement (879.95 billion) to achieve a quorum that could vote on the proposal they presented at the end of June. They then proceeded to vote “yes” with all 882.285 billion BONK, passing the proposal, and then 4.426 trillion tokens were transferred to their wallet.
Another company that tracks on-chain movements, Chainalogy, confirmed Lookonchain’s account of the incident. Saying The attacker obtained his tokens between July 4 and 5, purchasing some on major exchanges and borrowing others through DeFi platforms.
About 9 hours after voting for the $21 million, Chainasis says the attacker sent $188,000 to OKX (Peckshield estimates that number at $148,000) while putting the rest into a new DAO, “BONK 2.0,” which they created to control the stolen funds. According to the analytics firm, the new DAO is controlled by the malicious voter, the exploiter’s wallet, and a third wallet that is said to have financial ties to the voter’s wallet.
Punkdaw certain Loss Treasury said in a statement published on
Following news of the theft, BONK lost some of its value, with CoinGecko showing it trading at around $0.00000438 at the time of writing, down 7.4% in 24 hours but still up around 5% over the week.
A Working DAO or a Scam?
This event continues a series recently reported by CryptoRank that has seen DeFi platforms He loses Nearly $1 billion to bad actors so far this year.
But not everyone agrees a crime occurred, including World Liberty Financial’s financial advisor Ogle, who… He doubted Why did law enforcement become involved in what seemed like a normal DAO job.
“Someone legitimately bought a lot of tokens, proposed a vote on the DAO, the vote took place with almost no opposition, and the proposal was implemented,” they wrote on X.
Crypto Maxi later added that reports claiming the voting site was inaccessible during the voting period, if true, would raise separate concerns but would not necessarily make cross-chain voting illegal.
However, others disagreed. Ripple CTO Emeritus David Schwartz Argue Using voting control over a shared treasury for personal gain can amount to fraud because those involved in governance owe a fiduciary duty to other stakeholders. Furthermore, it was stated that BonkDAO’s lack of a formal legal shell may expose participants to partnership-style liabilities in some jurisdictions.
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