Launched by the cryptocurrency exchange Binance, BNB Smart Chain (BSC) recently saw a drain in funds. The BNB Chain DeFi protocol LaunchZone has been emptied of $700,000 in funds. Information are limited after the LaunchZone liquidity pool was robbed of more than 80% of its money on February 27. The project claims that an attacker had carried out this drain.
A statement on the project’s official Telegram channel advised people not to purchase tokens until further discoveries are made:
“$LZ is being hacked from DND exploiter. The team is handling the situation, please don’t buy the token at this stage. Please keep calm. We will update timely (sic).”
LaunchZone has over 44,000 Telegram subscribers and over 275,000 Twitter followers. The project has issued no announcements or cautions to its massive Twitter following, and its Facebook page has yet to reply as well.
For the last year, the BNB Chain ecosystem has been plagued by hackers and vulnerabilities. In October 2022, the BNB Chain itself was the victim of a $100 million exploit, resulting in a hard fork. They even had to suspend all transfers until the issue had been resolved. Attackers make use of the cross-chain weakness.
Jump Crypto, a Web3 infrastructure business, uncovered and exposed a significant weakness to the BNB Chain project in February 2023. Via fraudulent transfers, the issue might have allowed an attacker to generate an infinite number of tokens. The vulnerability was patched by the BNB team before it was made public.
According to blockchain statistics from a variety of blockchain explorers, the value of LaunchZone’s native token $LZ fell by more than 80% when funds were exchanged out using PancakeSwap.
