LaunchZone, a BNB Chain-based DeFi system, says that an exploit caused $700,000 in cash to be taken out of its liquidity pool, causing the value of its native token to crash.
LaunchZone, a decentralized finance (DeFi) protocol based on the BNB Chain, allegedly had $700,000 worth of funds stolen from it. The project claims an attacker used an exploit.
Although the LaunchZone liquidity pool lost more than 80% of its money on February 27, details are still limited. Users were admonished not to purchase tokens before additional information was obtained in a message posted to the project’s official Telegram group:
“$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).”
According to blockchain information from various blockchain explorers, the value of its native token LaunchZone (LZ) decreased by more than 80% as money was exchanged through PancakeSwap.
On its Telegram channel, LaunchZone has more than 44,000 subscribers, and on Twitter, it has almost 275,000. The project’s sizable Twitter following has not received any announcements or cautions from it. Its Facebook page has not yet reacted to Cointelegraph’s requests for comment.
The BNB Chain ecosystem has struggled with hacks and attacks over the past year. In October 2022, a $100 million scam that targeted The BNB Chain led to a hard fork. A cross-chain vulnerability had been used by the attackers.
Jump Crypto, a Web3 infrastructure company, also discovered and informed the BNB Chain team of a severe vulnerability in February. Via fraudulent transfers, the hack may have enabled an attacker to create an infinite supply of tokens. Prior to being made public, the BNB team patched the vulnerability.