Hacker drains $30 million in Spartan Protocol tokens from DeFi protocol

An attacker targeted the Binance Smart Chain (BSC)-based decentralized finance project Spartan Protocol and drained about $30 million from its liquidity pools.

What we know so far —
*Attacker used $61m in BNB to overcome the pools via a as yet unknown economic exploit path to remove roughly $30m in funds from the pools.

Reach out if you can help identify and analyse the exploit.https://t.co/aNTvdzKOeF

CC @RektHQ @samczsun @bneiluj

— Spartan Protocol (@SpartanProtocol) May 2, 2021

An attacker targeted the Binance Smart Chain (BSC)-based DeFi project Spartan Protocol and drained about $30 million from its liquidity pools.

Spartan Protocol also said that they are attempting to recover the withdrawn funds and have reached out to Binance.

What happens now?
1) Understand the bug
2) Try and get remaining funds back to members involved
3) Work with Binance on recovery of stolen funds
4) Get back to shipping V2

— Spartan Protocol (@SpartanProtocol) May 2, 2021

Analysts at PeckShield disclosed the attack mechanism, finding that the attacker exploited a vulnerability in how the protocol determines liquidity shares. The hacker inflated the pool balance before burning tokens in it to withdraw an excessive amount of base assets.

For the attack, he borrowed a flash loan on the PancakeSwap protocol of 100 000 BNB, which he then repaid, paying a fee of 260 BNB.

Detailed analysis of the bug in Spartan Protocol v1.

Where to now?

Community fund a https://t.co/mfghq1UJjH for Spartan Protocol v2.

Rebuild the shield wall.https://t.co/s11s9rWTtA

— Spartan Protocol (@SpartanProtocol) May 2, 2021

According to CoinGecko, the Spartan Protocol token (SPARTA) price, which had reached $1.71 on May 1, briefly fell to $1. As of writing, the quotes are around $1.15.

totaling $37.5 million.”>

In January, an unknown party exploited a vulnerability in the Iron Bank DeFi protocol and withdrew tokens totaling $37.5 million.

In April, the lending protocol EasyFi lost $6 million as a result of an attack, in which hackers gained remote access to the founder and CEO Ankitta Gaura’s computer and MetaMask wallet.

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