BNB Chain-based DeFi protocol LaunchZone claims it lost $700,000 after a hacker drained the funds from its liquidity pool.
Since the attack, the protocol’s native token has been plunging in value. LaunchZone has warned users from buying tokens until they conduct further investigation.
LaunchZone token plunges 80%
LauchZone announced on Twitter that the protocol is under attack and users should refrain from buying the token.
The message was first posted on their official Telegram group. The company later added that they have paused trading or transferring their token until they handle the situation.
According to LaunchZone, the company has lost $700,000, which hackers stole from the liquidity pool.
Since the attack, the company’s native token, $LZ, dropped by over 80% in hours. The token is currently trading at 0.02634, according to CoinMarketCap.
According to blockchain data from a number of different blockchain explorers, the funds were swapped out through PancakeSwap. (CAKE/USD)
Following the news, decentralized exchange Biswap announced that they would be delisting the $LZ token within five hours due to the hack.
BNB Chain hacks
Attackers are known to take advantage of a cross-chain exploit. The BNB chain has grappled with its fair share of hacks and exploits over the past year.
The chain lost $100 million worth of cryptocurrency in an exploit in October 2022, resulting in a hard fork.
In February 2023, web3 infrastructure firm Jump Crypto identified a critical vulnerability on the BNB Chain which would allow hackers to mint an unlimited amount of tokens through malicious transfers.
The BNB team fixed the vulnerability before they disclosed it to the public.
While hackers managed to get away with $100 million, BNB validators said the attack would have been worse with over $500 million stolen.
The attacks are seemingly becoming more sophisticated, and if they were organized, hackers would be able to get more funds from ecosystems than they do.
As the crypto sphere continues facing more attacks on bridges, communities are becoming more vigilant in shutting them down quickly and updating their systems to prevent further losses.
Source: https://crypto.news/bnb-chain-based-defi-protocol-launchzone-loses-700k/