Spartan Protocol was flash loan attack during upgrade to V2, with a loss of about $ 30 million, BSC is having problems?

The crypto world has once again experienced an attack from unknown internet hackers. Based on a tweet posted by Spartan Protocol, the hackers used $61 million worth of BNB to overcome the pools and bag an estimated $30 million fund from the pools.

Spartan Protocol – a community-driven platform incentivizing deep liquid pools – reported a fresh attack

Spartan Protocol is the synthetics platform on the Binance Smart Chain (BSC) network. The project is currently in the rollout to V2 with many of the names in the ecosystem. Spartan Protocol is in full swing on Twitter promoting its V2 release. However, the V1 version itself (with the total transaction volume x5 times the total circulation supply of SPARTA) is the weak point under attack.

As per the information provided by Spartan, the hackers exploited an economic route to siphon $30 million worth of funds from the Spartan pool. To overcome this act, the attackers have reportedly used $61 million worth of Binance Coins (BNB), the native cryptocurrency of the Binance Smart Chain (BSC).

Sadly, crypto scams continue to rock the fastly evolving crypto space. Spartan, however, has said that it has been working with the Binance team to bring a solution to this matter and recover the stolen funds.

The blockchain security and data analytics firm PackShield did some root cause analysis on the matter.

The firm noted that:

“The incident was due to a flawed liquidity share calculation in the protocol.”

This allowed the hackers to exploit the protocol and drain assets from its pools.

In a brief summary, the blockchain security firm explained:

“This incident was due to a flawed logic in calculating the liquidity share when the pool token is burned to withdraw the underlying assets. In particular, the specific hack inflates the asset balance of the pool before burning the same amount of pool tokens to claim an unnecessarily large amount of underlying assets. The consequence of this attack results in more than $30M loss from the affected pool.”

As china’s popular crypto analyst Wu Blockchain explains, this is the first-of-its-kind flash loan attack on the Binance Smart Chain. Back in September 2020, the BSC imitating Syntetix Project was hacked as it landed on the Binance Exchange.

After attaining an all-time high of $641 earlier today, the BNB price has dropped 1.1% as of writing this story. At press time, BNB was trading at a price of $616 with a market cap of $95 billion.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS