BT Finance Hack

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BT Finance

A large group of people decided to make a clever puzzle that held their money. The puzzle was solved by an unscrupulous puzzle solver, who then proceeded to keep their money, despite being asked nicely to return the money multiple times.

The puzzle maker has declared that the new version of their puzzle is completely unsolvable. Affected users have been given IOU tokens.

This is a global/international case not involving a specific country.

About BT Finance

"BT.Finance is a multi-chain smart DeFi yield aggregator targets the best and sustainable yield for tokens." "The Vaults are divided into 3 pools as Stable Profits Pool, High Yield Pool, and Smart Hybrid Pool to all users with various risk tolerances. The BT Vault V1 is to earn $CRV $SUSHI $PICKLE $BAS from other excellent DeFi yield aggregators and platforms, thanks for their innovative products and hard work. BT Vault V2 will develop smart hybrid strategies and launch it on BSC, Heco and other chains."

"DeFi Project BT.Finance announced through its official Twitter that it was exposed to hacking attacks. It added that the deposit of Curve.fi will be suspended and security will be strengthened in the additional attack prevention measures. It also requested that hackers voluntarily return funds for investor protection and good development of the DeFi industry. Meanwhile, BT.Finance explained that with the withdrawal fee protection function, it was able to reduce damages worth $140,000 during this hack." "We have deposited 17.88ETH, 69482USD, and 34104USDT for hacker withdrawals into ETH, USDC, USDT strategy addresses to reduce user losses."

"The development team has been analyzing the attack and the final technical solution together with the audit team today. But the current final solution will take time. We will launch the V2 version to completely solve the problem." "By building the constructor self-destruction contract, the exploiter bypassed our defense, which was the same as yDAI attack principle." "In order to strengthen the defense, we have increased the withdrawal fee of ETH, WBTC, USDC within 24 hours to 15%, USDT is 10%, so please do not withdraw within 24 hours, thank you!"

"We have governance funds for insurance and compensation, but we still say sorry for this incident." "We have contacted @peckshield for the first time to seek help and take countermeasures, thanks for their help!" "We hope that the hacker can return the funds for the sound development of our investors and DeFi, and we will use $BT to conduct a thank you bug test."

"We have contacted dozens of exchanges such as @binance @coinbase for help, once the stolen asset is deposited in the exchange, it will be frozen." "Meanwhile, We have already called the police in Singapore and will entrust a lawyer to deal this exploit. We still hope that the hacker can take the initiative to return funds for our users, We will use $BT tokens as a bug bounty for him."

"[U]sing a nice flash loan (100k ETH = $170M dydx), @btdotfinance's hacker is now using @TornadoCash to invest his money (>$1.4M). some nice use of cross asset swaps mechanism from Curve (notice the NFT in the tx) as well."

"All the bugs of v1 have been fixed." "We invited one more professional and technical expert from a security industry to takepart in our developing work. We will avoid financial logic errors as much as possible with his review." "We have created a bounty program in cooperation with the leading bug bounty platform @immunefi. The bonus fund is up to $100,000. All white hat hackers are welcome to find bugs for us."

"The block snapshot and stolen addresses confirmation has been completed already!" "Now the affected users can claim the IOU Token ($BTU) of BT.Finance. Thanks for your kindly waiting patiently!!!" "This compensation claim is for the loss of users who staked $ETH $USDT and $USDC in the exploit." "[T]he compensation solution is being implemented."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - BT Finance Hack

Date	Event	Description
February 8th, 2021	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $1,500,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

Rather than storing funds in large complicated puzzles that may or may not have solutions, it makes sense to store the majority of funds in offline wallets that require multiple signatures to unlock.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.