Bonk Treasury, $20 Million Stolen..."Governance Vote Becomes a Weapon for Fund Theft"

▲ Bonk (BONK)/Source: X

Solana (SOL)-based memecoin Bonk (BONK) plummeted due to the shock of a $20 million foundation fund theft. The attacker exploited a governance proposal. BonkDAO mobilized major exchanges and even the Solana Foundation to recover the funds.

According to crypto media outlet Benzinga on July 7 (local time), Bonk plummeted approximately 8% on Monday. This was a consequence of hackers siphoning off approximately $20 million worth of Bonk from the project's treasury. BonkDAO characterized the incident as a "malicious governance proposal."

BonkDAO stated that it tracked the wallets connected to the hack. It explained that it is coordinating its response to the situation with major exchanges, bridges, and the Solana Foundation. BonkDAO stated, "We have notified law enforcement. We continue to cooperate with relevant parties to recover the funds and identify those responsible."

According to blockchain analytics firm Chainalysis, the attack began on June 30. An anonymous wallet submitted a proposal to drain funds from the Bonk treasury. Subsequently, a separate wallet acquired approximately $8 million worth of Bonk through exchange purchases and DeFi borrowing. This was a move to secure 1% of the total supply to pass the proposal.

The attacker moved $20 million to the stolen funds wallet. Of this, $188,000 was analyzed to have been transferred to a cryptocurrency exchange for liquidation. The remaining $19 million was moved to a multisig wallet and currently remains in that wallet.

Bonk has fallen 40% since the beginning of the year and 80% over the past year. In the Solana ecosystem, it is the third-largest memecoin by market capitalization. Its market capitalization exceeds $390 million, and at its peak, its value surpassed $4 billion.

[Article Key Summary]

-Bonk plummeted approximately 8% after tokens worth about $20 million were stolen from the project's treasury.

-The attacker used a governance proposal and the acquisition of 1% of the total supply to pass the fund drainage.

-Of the stolen funds, $188,000 was moved to an exchange, and the remaining $19 million remains in a multisig wallet.

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