Share this article
Avalanche-Based Zabu Finance Sees $3.2M Hack
The attacker used Zabu’s “Transfer Tax” mechanism to mint tokens, sending their value to zero.
Updated May 11, 2023, 4:33 p.m. Published Sep 13, 2021, 12:32 p.m.
Zabu Finance, an Avalanche-based decentralized finance (DeFi) protocol, has been exploited for $3.2 million.
- The protocol tweeted Saturday that its Spore Pool was possibly under an exploit and confirmed the attack on Sunday.
- The attacker used Zabu’s “Transfer Tax” mechanism to mint tokens, causing their value to slide to zero from about $0.0047.
- Having removed 4.5 billion ZABU tokens, the attacker then dumped them on the Trader Joe’s and Avalanche Pangolin exchanges on the Avalanche network.
- Zabu plans to take a snapshot of the situation immediately before the exploit to protect both users who invested before the hack and those who bought in afterwards.
- The exploit totaling an estimated $3.2 million is probably the “first big exploit” on the Avalanche blockchain, according to DeFi analytics provider DeFiprime.
Read more: Can Avalanche Keep It Up? DeFi Users Rush In as Incentives Roll Out
STORY CONTINUES BELOW
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Stripe-Backed Blockchain Tempo Starts Testnet; Kalshi, Mastercard, UBS Added as Partners
Tempo, built by Stripe and Paradigm, has started testing payment-focused blockchain and has onboard a slew of institutional partners.
What to know:
- Stripe and Paradigm’s Tempo blockchain has launched its public testnet for real-world payment testing.
- Kalshi, Klarna, Mastercard and UBS are among a wave of new institutional partners now involved in the project.
- Tempo aims to offer low-cost, fast-settlement infrastructure for global payments as stablecoin adoption is accelerating globally.
Top Stories
