Innocent users are becoming targets of hackers as in-the-wild hack is happening on Binance now
There was an “in-the-wild” hack on Binance Smart Chain lately. The transfer and dump of millions of tokens are said to have been the outcome of the attack. Although the precise reason for the hack is unknown, it seems connected to the “wild allowance at the loss of innocent users.”
Here is one impacted user (Bscex?): 9.88M $LZ was transferred out and dumped, resulting in the significant price drop. 👇👇👇 https://t.co/6uIxI6zSCD pic.twitter.com/Y033Q1C3Gm
— PeckShieldAlert (@PeckShieldAlert) February 27, 2023
There are rumors that the attack caused 9.88 million LZ to be transferred and dumped, which caused a sharp decline in the token’s value. PeckShield has since encouraged users to cancel all allowances in their wallets immediately to prevent losses.
Users of Binance Smart Chain can check their allowances by going to the “Contracts” tab in their wallet and looking under the “Allowances” section. If you receive any allowances that you do not acknowledge or that you do not require, you should cancel them right away. Choose “Revoke” next to the allowance and click to accomplish this.
Smart contracts leverage allowances as a method to authorize the transfer of tokens on behalf of the user by a third party. While this may be practical for some users, it poses a security concern if not controlled appropriately. Hackers can use wild allowances to shift and dump tokens, costing innocent users a lot of money.
The Binance Smart Chain team has made no formal announcement regarding the hack. To find the issue’s fundamental cause, however, community members have started exchanging information. A contract that was launched on the network without verification may be the cause of the problem, according to certain theories.
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