Another Binance Smart Chain project was hit by a flash loan attack according to a post mortem written by the Burgerswap team. The project’s official Twitter account said at around 3 a.m. on Friday, Burgerswap suffered from a flash loan attack with hackers stealing $ 7.2 million in funds.
Binance Smart Chain Defi protocol burgerswap drained for $ 7.2 million
- Project Burgerswap explained on Friday that the project saw $ 7.2 million in funds drained after a malicious flash loan attack.
- “At around 3 am on May 28 (UTC + 8), Burgerswap on the BSC channel encountered a flash loan attack; $ 7.2 million was stolen from Burgerswap in 14 transactions, ”official Twitter account Noted.
All we ask is time.
– BurgerSwap (@burger_swap) May 28, 2021
- Burgerswap is a decentralized financing (challenge) project that leverages the Binance Smart Chain (BSC). Similar to Sushiswap or Uniswap, the Burgerswap protocol allows users to swap between tokens issued on BSC. Users can also add cash and earn the project’s native token called BURGER.
- “The hackers created their own Fake Coin (non-standard BEP-20 tokens) and formed a new trading pair with BURGER,” Burgerswap added. “By adjusting the routing, [the] the attacker created BURGER -> Fake Coin -> WBNB routing; via BURGER -> Fake Coin trading pair, the attacker entered Burgerswap via Fake Coin and manipulated the number of reserve0 and reserve1 in the pair’s contract, causing a price change, ”the team added Noted.
- Burgerswap isn’t the first BSC project to have problems with flash loan attacks, as hackers have apparently made a sport of it lately. A total of $ 6 million was stolen from two BSC projects last week, as Pancakebunny and Bogged Finance saw $ 3 million drained from each challenge project.
- Flash loans have been a problem for a number of challenge protocols in 2020 and through 2021. The specialized exploit has been a common attack in the challenge world since the Bzx challenge margin trading protocol was attacked.
- Flash loans are smart contract-based systems that allow the issuance of loans in a single transaction or attack. In the Burgerswap instance, the hacker fled with WBNB, BUSD, ETH, USDT, BURGER, XBURGER and ROCKS.
- Burgerswap explained on Twitter that the blockchain security company Peckshield helped with the investigation.
- The Burgerswap flash loan hack also follows BSC’s recent announcement of Ciphertrace. The blockchain monitoring company has added analytical support for the Binance smart chain to track illicit transactions.
What do you think of the recent Burgerswap hack and flash loan attacks on several Binance Smart Chain challenge projects? Let us know what you think of this topic in the comments section below.
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