LaunchZone token plunges 82% after hack

The LaunchZone DeFi protocol team on the BNB Chain network reported a hack. The project’s LZ token fell by 82%.

$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. pic.twitter.com/oXk3bFeSJF

— LaunchZone (LZ.finance) (@launchzoneann) February 27, 2023

“LZ is being hacked. The team is handling the situation, please do not buy tokens at this stage, stay calm,” the message says.

According to Cointelegraph, the hacker drained the protocol’s liquidity pool by 80%, moving assets worth $700,000 through DEX PancakeSwap.

Amid the incident, the LZ token price collapsed by 82.5% (CoinGecko). The coin is trading near $0.026, with a market capitalisation of about ~$165 300.

The project team decided to pause trading and transfers of LZ until the issue is resolved, “given the current situation”.

Please be informed that given the current situation, we have decided to pause the trading/transferring of $LZ token until the problems are solved. Thanks for your understanding and please keep updated! pic.twitter.com/CMz4I5V1wb

— LaunchZone (LZ.finance) (@launchzoneann) February 27, 2023

In 2022, Web3-industry losses from 167 major attacks amounted to about $3.6 billion. BNB Chain led in the number of incidents across blockchains.