Four DeFi projects on the Binance Smart Chain (BSC) carried out exit scams, siphoning users’ funds. This was reported by reporter Colin Wu, citing several investors.
Investors told WuBlockchain that another Popcornswap project on Binance Smart Chain ran away and took away 48,000 BNB. Within a few days, Zap Finance, Tin Finance, and SharkYield also ran away. SharkYield just ran away and took away 6000 BNB. pic.twitter.com/hDDtuEJpfe
— Wu Blockchain (@WuBlockchain) January 31, 2021
According to Wu, the Popcornswap project siphoned off 48 000 BNB ($2.2 million), and SharkYield 6 000 BNB ($275 000). Zap Finance and Tin Finance also siphoned off user funds, but the reporter did not specify the amounts.
The attackers left backdoors in the apps’ smart contracts to enable later withdrawal of user funds locked in liquidity pools.
Wu asserts that Binance’s security service is investigating a string of exit scams but cannot freeze assets denominated in BNB, which explains the attackers’ choice of token.
According to Wu, the exchange said it would consider auditing the security of smart contracts, but noted that BSC is a public blockchain where responsibility for risks and code review lies with users.
Update: In an interview with ForkLog, representatives of BSC said they are working with Binance security specialists to identify the scammers. The identities of the organizers of Zap Finance and Tin Finance are already known. The BSC team is negotiating the return of funds to users.
As a reminder, in November Binance helped investors recover Wine Swap funds stolen in the exit scam amount of $345 000.
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