{"id":434053,"date":"2026-07-14T14:20:46","date_gmt":"2026-07-14T08:50:46","guid":{"rendered":"https:\/\/dripp.zone\/news\/how-a-zeroed-oracle-signature-unlocked-9m-from-hedera-defi-lender-bonzo-lend-crypto-news\/"},"modified":"2026-07-14T14:36:04","modified_gmt":"2026-07-14T09:06:04","slug":"how-a-zeroed-oracle-signature-unlocked-9m-from-hedera-defi-lender-bonzo-lend-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/how-a-zeroed-oracle-signature-unlocked-9m-from-hedera-defi-lender-bonzo-lend-crypto-news\/","title":{"rendered":"How a zeroed oracle signature unlocked $9M from Hedera DeFi lender Bonzo Lend &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Hedera-based lending protocol Bonzo Lend has locked withdrawals after an oracle verifier accepted a proof containing a zeroed signature and public key, allowing a wallet to borrow $9.05 million against 250 SAUCE.<\/p>\n<p>Bonzo Lend and Bonzo Points remained paused as of July 13, while the protocol\u2019s official status page listed Bonzo Lend and all affected asset markets as under maintenance.<\/p>\n<p>Liquidity providers remain unable to <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/bonzo.finance\/blog\/bonzo-lend-incident-report-oracle-provider-exploit\">withdraw<\/a> while Bonzo Finance Labs and the Bonzo Finance Foundation determine a recovery path and the conditions for reopening.<\/p>\n<p>Wallet A first deposited 250 SAUCE, worth only a few dollars. At 00:51 UTC, it submitted a SAUCE\/wHBAR price update that inflated the token&#8217;s value by roughly 12 orders of magnitude even though the market price stayed near 0.2 HBAR.<\/p>\n<p>Eight seconds after the manipulated price reached the oracle&#8217;s on-chain storage, the wallet borrowed 6.63 million USDC.<\/p>\n<p>It then borrowed 34.5 million wrapped HBAR, bringing the principal extracted by Wallet A to approximately $9.05 million at Bonzo&#8217;s reference prices.<\/p>\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_bonzo_lend_zero_signature.png\" target=\"_blank\" rel=\"noopener\"><noscript><\/noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazyload alignnone wp-image-547463\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_bonzo_lend_zero_signature.png\" alt=\"Flow diagram showing how a zero signature led from 250 SAUCE collateral to $9.05 million in Bonzo Lend borrowing and locked withdrawals.\" width=\"720\" height=\"1344\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_bonzo_lend_zero_signature.png 918w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_bonzo_lend_zero_signature-161x300.png 161w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_bonzo_lend_zero_signature-548x1024.png 548w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_bonzo_lend_zero_signature-768x1434.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_bonzo_lend_zero_signature-823x1536.png 823w\" data-sizes=\"(max-width: 720px) 100vw, 720px\"\/><\/a><\/p>\n<div class=\"cs-article-embed\"> <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/how-tokenized-stocks-fail-as-collateral-even-when-the-stock-price-does-not-move\/\" class=\"cs-article-embed__link\"><\/p>\n<div class=\"cs-article-embed__media\"> <noscript><img width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/wrapped-stock-collateral-vault-oracle-failure-1024x576.jpg\" alt=\"How tokenized stocks fail as collateral even when the stock price does not move\" loading=\"lazy\" decoding=\"async\"\/><\/noscript><img class=\"lazyload\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/wrapped-stock-collateral-vault-oracle-failure-1024x576.jpg\" alt=\"How tokenized stocks fail as collateral even when the stock price does not move\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">How tokenized stocks fail as collateral even when the stock price does not move<\/h3>\n<p>Edel\u2019s exploit was small, but it hit the next frontier for tokenized equities: credit markets, where 1:1 backing is not enough if wrappers, vaults and exchange rates can be gamed.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jul 2, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div>\n<p> <\/a><\/div>\n<h2>How zeros passed the verifier<\/h2>\n<p>The submitted update contained no valid oracle signature. Its signature field was <code>[0,0]<\/code>, while the referenced committee public key was also the zero point, known in cryptography as the point at infinity.<\/p>\n<p>Supra&#8217;s verifier sent those inputs to Hedera&#8217;s pairing precompile. Because both points represented the mathematical identity, the pairing equation returned true as designed.<\/p>\n<p>The verifier then treated that result as proof of a committee signature because it had not first rejected zero, identity, and off-subgroup inputs.<\/p>\n<p>In plain English, the network answered the equation it received correctly, while the verifier mistook that answer for authorization.<\/p>\n<div id=\"cs-inline-newsletter-6a55f06baa279\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\">CryptoSlate Daily Brief<\/span><\/p>\n<h3 class=\"cs-inline-newsletter__title\">Daily signals, zero noise.<\/h3>\n<p class=\"cs-inline-newsletter__copy\">Market-moving headlines and context delivered every morning in one tight read.<\/p>\n<p> <span><i class=\"fa-regular fa-bolt\" aria-hidden=\"true\"\/> 5-minute digest<\/span> <span><i class=\"fa-regular fa-star\" aria-hidden=\"true\"\/> 100k+ readers<\/span><\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__privacy\">Free. No spam. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span>You\u2019re subscribed. Welcome aboard.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>Bonzo said its lending contracts then followed their programmed loan-to-value rules using the price already stored by the oracle.<\/p>\n<div class=\"cs-article-embed\"> <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/defis-next-institutional-wave-may-come-from-users-who-never-see-it-ceo-of-katana\/\" class=\"cs-article-embed__link\"><\/p>\n<div class=\"cs-article-embed__media\"> <noscript><img width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/06\/defi-creditcard-1024x576.jpg\" alt=\"DeFi\u2019s next institutional wave may come from users who never see \u201cbehind the scenes\u201d \u2013 CEO of Katana\" loading=\"lazy\" decoding=\"async\"\/><\/noscript><img class=\"lazyload\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/06\/defi-creditcard-1024x576.jpg\" alt=\"DeFi\u2019s next institutional wave may come from users who never see \u201cbehind the scenes\u201d \u2013 CEO of Katana\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">DeFi\u2019s next institutional wave may come from users who never see \u201cbehind the scenes\u201d \u2013 CEO of Katana<\/h3>\n<p>Katana CEO Matt Fisher says DeFi\u2019s next wave may come from products that hide the protocols underneath.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jun 18, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div>\n<p> <\/a><\/div>\n<p>A separate Wallet B borrowed roughly $1 million while the abnormal price remained live. That wallet contacted Bonzo, identified itself as a white-hat responder, and stated that it intended to return the funds.<\/p>\n<p>Bonzo counted roughly $1 million as recovered, though the funds had yet to be returned and the final tally was still unsettled.<\/p>\n<div class=\"cs-article-embed\"> <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/explosive-truth-behind-bots-that-front-run-thieves-to-save-funds-but-they-decide-who-gets-paid-back\/\" class=\"cs-article-embed__link\"><\/p>\n<div class=\"cs-article-embed__media\"> <noscript><img width=\"1024\" height=\"538\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/MEV-hack-1024x538.jpg\" alt=\"Digital \u201cRobin Hood\u201d bots steal from hackers but don't always give back to the poor\" loading=\"lazy\" decoding=\"async\"\/><\/noscript><img class=\"lazyload\" width=\"1024\" height=\"538\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/MEV-hack-1024x538.jpg\" alt=\"Digital \u201cRobin Hood\u201d bots steal from hackers but don't always give back to the poor\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Digital \u201cRobin Hood\u201d bots steal from hackers but don&#8217;t always give back to the poor<\/h3>\n<p>As MEV bots become crypto\u2019s accidental emergency responders, users are being left at the mercy of profit-maximizing middlemen.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jan 25, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div>\n<p> <\/a><\/div>\n<p>Bonzo reported that Supra fixed the verifier, but the lending pool remains closed.<\/p>\n<p>The remaining questions include whether regression tests confirm that the verifier rejects identity inputs, whether Bonzo adds price-deviation checks or tightens collateral parameters, and how available assets will be handled when withdrawals resume.<\/p>\n<p>Bonzo\u2019s official status page continued to list the incident as unresolved on July 13. Its latest formal update, <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/bonzo_finance\/status\/2075880102303576390\">posted July 11<\/a>, said the protocol remained paused.<\/p>\n<p>Bonzo has yet to announce reimbursement, a reopening date, or user-facing withdrawal terms, leaving liquidity providers dependent on the recovery plan that comes next.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Hedera-based lending protocol Bonzo Lend has locked withdrawals after an oracle verifier accepted a proof containing a zeroed signature and public key, allowing a wallet to borrow $9.05 million against 250 SAUCE. Bonzo Lend and Bonzo Points remained paused as of July 13, while the protocol\u2019s official status page listed Bonzo Lend and all affected [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":434055,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-434053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/434053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=434053"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/434053\/revisions"}],"predecessor-version":[{"id":434056,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/434053\/revisions\/434056"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/434055"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=434053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=434053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=434053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}