BNB Chain based DeFi Protocol LaunchZone loses $700,000 in suspected Cyber Attack
BNB Chain-based DeFi protocol LaunchZone claims that the exploit led to $700,000 being drained from its liquidity pool.aa
The project alleges that a hacker has carried out an exploit. with its native token decrease in value.
LaunchZone's official Telegram group warned users not to buy tokens until the next update has been gathered.
“$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).”
LaunchZone native token $LZ decreased by over 80% as funds were swapped out through PancakesSwap as per blockchain data from many different blockchain explorers.
LaunchZone has over 44,000 members on its Telegram channel and 275,000 followers on Twitter the project has not made any warnings to its Twitter and Facebook page.
In February 2023, Jump Crypto, a Web3 infrastructure company, detected and reported a significant security flaw to the BNB Chain team. The vulnerability could have potentially enabled a malicious party to generate an endless supply of tokens via illegitimate transfers. Fortunately, the BNB team addressed the issue and resolved the vulnerability before it could be exploited by bad actors or disclosed to the general public.