DailyCoin
Published May 31, 2021 04:06AM ET
Updated May 31, 2021 04:30AM ET
Attacks Continue: BurgerSwap is Being Bombarded
BurgerSwap, an early automated market maker on the Binance Smart Chain, has become the victim of a cyber-attack that resulted in losses of over $7 million. The perpetrators utilised a flash loan in their assault, which is one of the most common methods of breaching the security of DeFi protocols.
BurgerSwap was not the only protocol to fall victim to this attack, with PancakeBunny also being targeted by one such strike, which left them with losses of as much as 95.5% of their value.
BurgerSwap the New Victim
Cyber-attacks are growing more vicious with each passing day, with many speculating that the boom of cryptocurrencies and DeFi have drawn a great deal of unwanted attention from cyber-criminals. BurgerSwap was the latest victim of a wave of attacks, as it was announced that the protocol had lost a sum of $7.2 million during a flash loan attack.
We understand what the community cares about the most. Detailed compensation plan is on the way. https://t.co/DnwRN33ENC— BurgerSwap (@burger_swap) May 28, 2021
In the wake of the attack the protocol has temporarily suspended Swap, including the addition or removal of liquidity, to avoid further losses.
The use of flash loans in attacks on protocols has risen astronomically in recent times due how seemingly easy they are to pull off. The attacker instigates such an assault by obtaining a flash loan from a lending protocol, which they then use to unethically manipulate the market.
Attacks can span a matter of seconds, and multiple DeFi protocols can be targeted at once. This particular attack resulted in the loss of tokens like WBNB to the value of $1.6 million and 432,000 BURGER, valued at the time at $3.2 million. Other tokens that were pilfered include xBurger, USDT, ROCKS, and BUSD.
On the Flipside
The Way Forward
Since the attack, BurgerSwap has stated that the tech team is working hard to resolve the issue, and a solution will be published soon. The protocol has also stated that it will cover all of the losses incurred by users as a result of the malicious attack.
In related news, Pancake Bunny also fell victim to a flash loan attack, which saw the loss of over 500,000 BUNNY tokens.
The impact of this attack on the protocol has left them in dire straits, as the value of the token plummeted by as much as 95%, although no vaults were compromised.
Due to the frequency of these attacks, Binance has taken immediate steps to beef up the security of the Binance Smart Chain by partnering with CipherTrace. This deal will see CipherTrace’s transaction tracking and wallet attribution software introduced to the Binance Smart Chain and will provide analytical support for BSC.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7] You can always unsubscribe with just 1 click.
Continue reading on DailyCoin
Written By: DailyCoin
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.