CryptocurrencyUranium Finance

Binance Smart Chain Based DeFi Protocol Lost $50 Million as a Result of Exploitation

DeFi (decentralized finance) project on Binance smart chain; Uranium Finance suffered exploitation as a result of which $50 million have been drained from the platform.

Uranium Finance tweeted last night that during the platform’s migration process it exploited. Sharing an address with $50 million in it the platform stated that “The only thing that matters is keeping the unds on BSC.” Further, to restrain the exploitation’s effect, they requested people to tweet the mentioned address with Binance so that any further transfer of assets could be stopped.

They also tweeted:

“If you have a binance account please log in and immediately report stolen funds with this address, they have a mechanism for this as well.”

According to Igor Igamberdiev, The Block’s researcher various tokens including BTC, ETH, BUSD, and USDT have been wiped out from the protocol.

In particular 112,000 U92 (protocol’s native token), 1,800 ETH ($4.7 million), 638,000 ADA ($0.8 million), 34,000 wrapped BNB ($18 million), and 80 BTC ($4.3 million), 17.9 million BUSD ($17.9 million), ADA ($0.8 million) and 5.7 million USDT ($5.7 million) are stolen.

The platform is an AMM (automated market maker) protocol and claims that they give users dividends on daily basis. Further what, according to the platform, differentiate it from its peers is the U235 token whose holding on the wallet makes the user AMM investor who will be eligible to earn daily dividends in BNB and BUSD.

Since its launch, it is the second exploitation of the protocol. Though it is not clear yet but according to Igamberdiev the pair contract in protocol’s V2 had a bug, that allowed the exploiter to use a swap function, through which any hacker could wipe out any coin from the platform.

Moreover, through an Ethereum mixer based on zero-knowledge proofs technology; Tornado Cash, that enables the users to withdraw funds anonymously, the exploiter has already withdrawn almost $6.4 million or 2,438 ETH.

Lastly, the researcher stated that because Uranium Finance’s team did not perform a white-hat attack-that secures the protocol from hackers-, before upgrading to V2.1, it could be an insider job or a rug pull.

Danna James

Danna is a journalist and technical writer with six years of experience researching and creating crypto articles, reviews, and how-to guides for different online media outlets, and academic journals.

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