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Binance Smart Chain Raises Alarm after Fresh Loan Attack

After recording more than eight cases of flash loan attacks on its network in the first half of 2021, Binance Smart Chain has labelled the hacks “well coordinated”, and has called for immediate security measures.

After recording more than eight cases of flash loan attacks on its network in the first half of 2021, Binance Smart Chain has labelled the hacks “well coordinated”, and has called for immediate security measures.

BSC Network Says Attacks are Coordinated

After experiencing another fresh flash loan attack this week, the network raised alarm via its Twitter, imploring for cooperation and awareness from its dApps.  The network has reasons to believe that the wave of attacks are well coordinated.

Apart from advising that all BSC-based dApps make regular health checks and undertake consistent risk control measures, it also suggested a list of security companies (e.g. Certikog) which could help dApps on its platform combat the waves of attack. 

In recent days, the BSC network has been the hotspot for flash loan attacks. BSC-based decentralized lending platform, Belt Finance, was ripped off of $6.3 million barely 24 hours ago through a flash loan attack.

Another liquidity protocol in the chain, PancakeBunny, was hit by an attack that cost more than 200 million USD, and caused the BUNNY token to lose 95% of its value within minutes of the attack. Bogged Finance and Burgerswap are also old dApps affected by these “coordinated” attacks as Belt Finance joins the growing list.

According to the protocol, BeltBUSD vault users lost 21.36% of their funds after yesterday's attack. There were no additional pools or vaults compromised. The BeltBUSD pool suffered a total loss of 50 million BUSD (US $50 million), comprising 43.8 million in fees and a further 6.23 million BUSD stolen by the attacker.

The protocols have paused withdrawal and deposits for 48 hours since yesterday’s attack. Compensation plans will also be released along with the resumption of deposits and withdrawals. 

Binance Smart Chain is doing its best to tighten security measures and to raise awareness amidst growing scrutiny. And while this itself is commendable, it is doing little to calm the uneasy BSC  community.

If more attacks and hacks were to happen in the future, it might not entirely be a surprise, especially as adoption and popularity of the DeFi industry continues to grow.

To buy or exchange any top crypto for Binance’s BUSD on ChangeNOW, click here.

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