DeFi project on Binance Smart Chain loses $500,000 in attack

A DeFi project operating in the Binance Smart Chain (BSC) ecosystem, Impossible Finance (IF), was subjected to an attack using flash loans.

Representatives of the project said they would fully compensate funds contributed to the liquidity pools. They promised to inform users about the progress of the incident investigation, but did not specify the amount withdrawn by the unknown party.

The SushiSwap developer Mudit Gupta noted that it amounts to $500,000. The expert also drew a parallel with the recent attack on the DeFi protocol BurgerSwap.

Impossible finance got exploited today for $500k.https://t.co/mzCPRluOjn

Same exploit as the burger swap one:https://t.co/3PkVtn7Hi7

If the original project gets hacked, why don’t the forks react?

— Mudit Gupta (@Mudit__Gupta) June 21, 2021

WatchPlug analysts clarified that the attacker exploited a vulnerability in the liquidity pool’s smart contract. This allowed him to perform swaps twice ‘at the same price’, which is normally impossible.

In early June, Impossible Finance said it had raised $7 million from a number of investors, including CMS Holdings and Alameda Research. The team planned to deploy the funds to broaden its product line and build a multi-chain ecosystem to ‘foster growth and composability of the DeFi sector’.

In May, an unknown hacker withdrew $6.2 million from the Belt Finance DeFi protocol on the Binance Smart Chain.

In May, the hacker drove down the PancakeBunny project’s token price by 80%. To manipulate prices in the USDT/BNB and BUNNY/BNB pairs, he borrowed funds on PancakeSwap.

Later, representatives of the BSC stated about attacks by “well-organised hackers” on DeFi projects in the ecosystem and outlined several steps to improve security and reduce the risk of hacks.

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