$3 Million Flash Loan Attack Reportedly Suffered by a Decentralized Finance Platform
Ever since the year 2021 began, the Binance Smart Chain (BSC) blockchain network has gained a tremendous amount of growth and success. It is mainly because the blockchain network proved to be better than the Ethereum blockchain network. By the end of 2020, the Ethereum blockchain users had several concerns and issues they were facing at the Ethereum blockchain.
The major concern was scalability where the Ethereum blockchain solution failed badly, as it was not able to handle many transactions in a single attempt. This resulted in the second major concern, which was high fees for every Ethereum transaction.
On the other hand, Binance Smart Chain (BSC) offered solutions to both problems. In a matter of months, several projects on the Binance Smart Chain (BSC) observed how their demand grew. The users from the Ethereum network started moving to the Binance Smart Chain (BSC) projects.
This resulted in the BSC network accumulating a mass user base and as a result, the decentralized finance (DeFi) sector was thriving. However, it turns out that just like every other network, Binance Smart Chain (BSC) also had a weakness. Unfortunately, that weakness is even more alarming and concerning than Ethereum’s scalability and high fees.
In recent months, the Binance Smart Chain (BSC) has become a playground for hackers who are constantly targeting the smart chain and exploiting it in a number of ways. Once again, the users from the Binance Smart Chain (BSC) are concerned and want to move on to different blockchain networks.
Just recently, another decentralized finance (DeFi) ecosystem on the Binance Smart Chain has ended up becoming prey to hackers. The reports confirm that the name of the decentralized finance (DeFi) protocol is Bogged Finance.
The reports suggest that as a result of the attack, half the total liquidity of $3 million was drained from Bogged Finance, a decentralized finance platform. The hack attack has taken place a week after another attack that had taken place on PancakeBunny, another BSC network protocol.
The team at Bogged Finance has revealed that the hack attack took place on the protocol on Sunday. The team also warned the users not to purchase any of its native tokens. The company revealed that it is currently trying its best to solve the problem and would share an update soon.
Until then, Bogged Finance team has asked the users to hold on to buying the native tokens for the protocol.
The Bogged Finance team has revealed that their developers were able to detect the hack and they mitigated it in a matter of 45 seconds. Unfortunately, the hacker was still able to steal away $3 million that was part of the liquidity pool, which at that time was $6 million in total.
As a result of the hack, the price of Bogged Finance token “BOG” has experienced a serious price drop. Before the exploit, the price of the token was around $1.8 and at the time of writing, its price is at $0.0003.