BONK Drops 9% After BonkDAO Governance Attack Drains 20M 

  • BonkDAO Governance Attack drained nearly $20 million from the BONK treasury.
  • Attackers reportedly spent about $4.4 million to secure voting control.
  • Kraken and Upbit paused BONK transfers while investigations continue.

BonkDAO Governance Attack has resulted in the theft of nearly $20 million worth of BONK tokens after attackers exploited the project’s on-chain governance system. The incident has prompted BonkDAO to coordinate with exchanges, the Solana Foundation, and law enforcement as investigators trace the stolen assets. 

At press time, BONK traded at $0.00000437, down 8.98% over the past 24 hours following the treasury drain.

BonkDAO Governance Attack Used Governance Vote to Drain Treasury

The BonkDAO Governance Attack began on June 30, when an anonymous wallet submitted Bonk Improvement Proposal #76 through the DAO’s governance platform. According to Chainalysis, the proposal sought approval to transfer the treasury’s BONK holdings to a wallet controlled by the proposer.

To reach the required voting quorum, another wallet accumulated roughly 1% of BONK’s circulating supply. According to Lookonchain on X, the attacker spent about $4.4 million purchasing BONK on Bybit and Binance, while also borrowing additional funds through DeFi lending protocols to secure enough voting power. 

After the proposal passed, more than 4.4 trillion BONK tokens, valued at approximately $20 million, were transferred from the treasury to a wallet ending in JHvQ before later moving to another Solana address.

BonkDAO said it has identified exchange wallets linked to the token purchases and notified law enforcement.

BonkDAO Governance Attack Triggers Exchange Restrictions

Following the BonkDAO Governance Attack, BonkDAO confirmed it is working with centralized exchanges, network bridge providers, the Solana Foundation, and investigators to recover the funds and identify those responsible. The project described the incident as a malicious treasury drain carried out entirely through legitimate governance transactions.

The attack has also triggered immediate action across the crypto industry. Upbit and Kraken temporarily suspended BONK deposits and withdrawals, citing user protection following the security incident. 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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