$7 Million Lost in Flash Loan Attack on BSC's BurgerSwap

Key Takeaways

  • BurgerSwap was hit by a flash loan attack last night. The losses amount to roughly $7.2 million.
  • Uniswap founder Hayden Adams noted that a key part of the code was changed by the BurgerSwap team, raising suspicions of an inside job.
  • Incidents on Binance Smart Chain have multiplied in recent weeks resulting in tens of millions in lost user funds.

Another Binance Smart Chain app has suffered a flash loan attack. More than $7 million of users’ funds was drained from BurgerSwap last night.

BurgerSwap Suffers Attack

Flash loan attackers are increasingly targeting Binance Smart Chain applications. This time, it was Uniswap clone BurgerSwap that got exploited. Last night, an attacker borrowed funds from PancakeSwap to unbalance the liquidity pools on BurgerSwapm then emptied them before returning the loan.

BurgerSwap posted a breakdown of the incident on Twitter earlier this morning.

The attack was worth roughly $7.2 million. Some of the funds are now on the Ethereum blockchain, while some BURGER tokens have been left on Binance Smart Chain. BurgerSwap is one of Binance Smart Chain’s leading applications. It was launched last year and has similar code to Uniswap’s V2. However, as Uniswap founder Hayden Adams noted, BurgerSwap’s code misses out a crucial line responsible for securing its liquidity pools. Adams reacted to the attack by noting that the pools were very susceptible to this type of flash loan attack without the line of code before adding “iWoNDerWhYTHeyDiDtHAt.”

Many Binance Smart Chain projects have suffered exploits recently, and suspicions of inside jobs have been running high. In some examples, such as the case of Uranium Finance, key parts of the code used by other projects have been omitted or changed. Both Uranium Finance and BurgerSwap are run by anonymous teams, which would reduce the accountability in the event of an inside job.

Meerkat Finance, a copy of Yearn Finance, suffered a suspected rug pull worth $30 million. Last week, Bunny Finance was exploited by a flash loan attack, leading the price of the BUNNY governance token to drop by 96%.

This year alone, the total losses from attacks on Binance Smart Chain projects are now comfortably in the tens of millions of dollars.

Disclaimer: The author held BTC, ETH, and several other cryptocurrencies at the time of writing.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article