The DeFi protocol claims that an exploit caused $700,000 to be subtracted from its liquidity pool, resulting in the value of its native token plummeting.
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$700,000 has been stolen from the BNB Chain-based decentralized finance (DeFi) protocol LaunchZone, and the project alleges that an attacker has carried out the exploit.
Details remain relatively scant after more than 80% of the funds in LaunchZone’s liquidity pool were stolen on February 27. A message from the project team on the official Telegram channel warned users not to buy more tokens until they can collect more information about what happened:
“LZ is being attacked by a DND exploiter. The team is handling the situation, please don’t buy the token at this stage. Keep calm. We will update soon.”
The value of its native LaunchZone (LZ) token fell by more than 80% as funds were exchanged via PancakeSwap, according to blockchain data from several different explorers.
LaunchZone has more than 44,000 members on its Telegram channel and some 275,000 followers on Twitter. The project has not made any warnings or announcements to its large number of followers on Twitter.
The BNB ecosystem has faced hacks and exploits in the past year. The BNB Chain network fell victim to a $100 million exploit in October 2022, which led to a hard fork. The attackers took advantage of an exploit that affected multiple networks.
Web3 infrastructure company Jump Crypto also identified and disclosed a critical vulnerability to the BNB Chain team in February. The exploit could have allowed an attacker to mint an unlimited number of tokens through malicious transfers. The BNB team fixed the vulnerability before it was made public.