Decentralized Finance Protocol (DeFi) Bogged Finance lost $ 3.6 million due to flash credit attack. The protocol developers reported this in their blog.
In a similar attack against PancakeBunny, the attacker was able to increase the balance of BOG tokens before selling them on the market. As PeckShield analysts found out, the incident occurred due to a bug in the code that allowed an attacker to increase the balance by self-transferring tokens.
Source: medium.com
With the help of a flash loan, the attacker generated over 15 million BOG tokens worth more than $ 15 million. Noticing an exploit in the staking section of BOG, the attacker was going to cause hyperinflation of tokens through a flash loan. It was reported that the scale of the attack was limited within 45 seconds. Nevertheless, this was enough for the attacker to withdraw some of the funds.
The project developers have already announced that the affected parties will receive BOG tokens in the next few hours. As part of the transition to a new contract, the developers will burn 7.5 million BOG. Also, Bogged Finance urged not to buy a token amid the identified exploit.
The consequences of the attack immediately affected the BOG token, which lost 100% of its value in a matter of minutes. Back on Sunday, May 23, the token was trading at $ 1.9. At the time of this writing, the price is $ 0.00046608.
Bogged Finance is a protocol based on the Binance Smart Chain blockchain. It allowed users to research and place orders for any token on the Binance blockchain network.
This is at least the third flash credit attack since the beginning of May. Previously unknown people attacked the DeFi protocols FinNexus and bEarn Fi. The total losses from attacks amounted to more than $ 18.5 million.
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