BSC Defi Protocol Burgerswap Loses $7.2 Million from a Flash Loan Attack – Bitcoin News

The BSC Defi Protocol Burgerswap Loses $7.2 Million from a Flash Loan Attack – Bitcoin News. The damage was done by an anonymous hacker, who took control of the largest mining pool for the BSC Defi Protocol, and as a result was able to influence the difficulty of the BSC Defi Protocol, and the reward amount that was paid to the miners.  The attacker was able to borrow $7.2 million worth of flash loans, and then repay the loans while leaving the money in the account.

The scaling battle of Bitcoin Cash is not over yet. BCH / USD is losing ground again after a couple of days of relative stability and a minor rebound. The BCH / USD pair has dropped below the key $1,200 support level and is currently trading at $1,112 on Bitstamp. If the current trend gets a bit stronger, the $1,000 round figure might be in danger.

The recent Crypto market slump has not only effected the worth of the currencies, but it has also further damaged the reputation of the concepts that the cryptocurrencies are based on. A recent report has shown that a well-known altcoin exchange platform has been attacked by an unknown hacker, and as a result the exchange has lost $7.2 million worth of funds. The attack was carried out by a Flash Loan.

Another Binance smart-chain project was hit by a flash credit attack, according to a post-mortem by the Citizenswap team. The project’s official Twitter account shared that Citizenswap was subjected to a blitz Friday around 3 a.m., with hackers stealing $7.2 million.

Binance’s smart chain challenge protocol, Burgerswap, merges for $7.2M

  • The Citizens Swap Project said Friday that $7.2 million in funds were siphoned off from the project after a malicious flash loan attack.
  • Around 3 a.m. on May 28 (UTC+8), Citizenswap was hit by a flash credit attack on the BSC network; $7.2 million was stolen from Citizenswap in 14 transactions, according to the official Twitter.

All we ask is a little time. – BurgerSwap (@burger_swap) 28. May 2021

  • Citizenswap is a decentralized financial (challenge) project using the Binance Smart Chain (BSC). Similar to Sushiswap or Uniswap, the Citizenswap protocol allows exchanges between tokens issued on BSC. Users can also add money and earn their own project token, called BURGER.
  • The hackers created their own fake currency (non-standard BEP-20 token) and formed a new exchange pair with BURGER, adds Citizenswap. By setting up a routing, [the attacker] created a BURGER -> Fake Coin -> WBNB routing; via the BURGER -> Fake Coin trading pair, the attacker reintroduced the citizen swap via Fake Coin and manipulated the amount of reserve0 and reserve1 in the pair’s contract, resulting in a price change, the team said.
  • Citizenswap is not the first BSC project to experience problems with flash credit attacks, as hackers seem to have made a sport of it lately. Last week, a total of $6 million was stolen from two BSC projects. Pancakebunny and Bogged Finance each pulled $3 million from the final project.
  • Flash credits have become an issue for a number of defense protocols in 2020 and 2021. A specialized exploit has become a common attack in the defi world since the attack on the defi Bzx margin trading protocol.
  • Flash loans are smart contract based systems that allow loans to be made in a single transaction or attack. In the Citizenswap example, the hacker received WBNB, BUSD, ETH, USDT, BURGER, XBURGER, and ROCKS.
  • Citizenswap said on Twitter that blockchain security firm Peckshield was helping with the investigation.
  • The Citizenswap flash scale hack also followed Ciphertrace’s recent BSC announcement. The blockchain watchdog has added analytics support for Binance’s smartchain to detect illegal transactions.

What do you think about the recent Citizenswap hack and flash credit attacks on several Binance Smart Chain Defi projects? Let us know what you think in the comments below.

Tags in this story

7.2 million, Binance Smart Chain, bnb, Bogged Finance, BSC, BURGER, Citizenswap, Citizenswap Hack, Bzx defi protocol, Ciphertrace, decentralized finance, DeFi, Drained, flash loan, flash loan attack, hacked, hackers, liquidity pools, LP token, Pancakebunny Photo credit: Shutterstock, Pixabay, Wiki CommonsOn April 29, 2017, the bit-bay cryptocurrency exchange was hit with a flash-loan attack that resulted in the loss of $7.2 million. In a flash-loan attack, a borrower takes out a loan for a small amount of money with a high interest rate, and then disappears, leaving the lender no way to get their money back. Flash-loan attacks are considered a form of virtual bank robbery.. Read more about flash loan attack explained and let us know what you think.

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