Binance cryptocurrency exchange believes that projects on the Binance Smart Chain blockchain it has created are being attacked by “well-organized hackers.” The company notes that in recent years there have been more than eight attacks using the flash loan function, in which attackers resort to using unsecured loans to manipulate the liquidity of projects and withdraw multimillion-dollar amounts into their wallets.
There are >8 #flashloan hacks recently, we believe, an well organized hackers are targeting #BSC now. It is very challenging time for the BSC communty. We are calling for the actions for all the #dapps:
– Binance Smart Chain (@BinanceChain) May 30, 2021
The last such attack took place at the end of last week. The hackers took advantage of a vulnerability in the mechanism for calculating the collateral of the DeFi project Belt Finance and stole about $ 6.3 million. To do this, they took eight loans through the PancakeSwap exchange for a total of $ 385 million. Belt Finance invites users to increase income in the decentralized finance space through optimized strategies to exchange stablecoins on the BSC blockchain. The target of the attack was the beltUSD storage, which interacts with such protocols as Venus, Alpaca and Fortube.
“Basically, the problem arose from Belt misintegration with the Elipsis strategy. A similar problem arose last month, but then it was related to incorrect integration of Venus, ”said SushiSwap developer Mudit Gupta.
Binance urged projects to re-ask audit firms to verify the reliability of their systems.
“If you are forked from another project, please double and triple check your changes to the original version,” she writes. Often, attacks are caused by errors when copying the code of existing projects, in which the corresponding vulnerabilities are closed.
The exchange also asks developers to use appropriate risk control measures and monitor suspicious activity in real time, and if it is detected, stop the work of protocols. In addition, Binance invites them to develop a response plan for the worst scenario and launch bug-catching programs with reward for specialists.
“The BSC blockchain has been a mess lately,” writes Larry Cermak, an analyst at The Block. – Most of the nodes are operated by Binance and are based on AWS to eliminate frequent forks. In fact, all major decentralized applications have already suffered due to unfinished forks and fraud. ”
“BSC is a public infrastructure with unlimited access, where anyone can launch their project. Hackers and hacks are present, but DeFi exploits are nothing new and are clearly not unique to BSCs. It is impossible to roll back the history of transactions, as people imagine it, “- said earlier a spokesman for Binance.
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