Flash loan cybercriminals have been feasting on the Binance Smartchain in recent weeks. Decentralized Applications (Dapps) on the network have been drained repeatedly in May. Reports have it that the BSC ecosystem has lost over $167 million to these attacks in the past 30 days.
BSC has remained a good spot for flash loan hackers. These hackers roughly intercept Dapps loan protocols, so as to access loans without relinquishing any collateral. Several BSC Dapps have been jarred by flash loan hackers time after time including Burgerswap and PancakeBunny.
Siphoning funds from a decentralized application requires the hacker to leverage on flash loans by triggering protocols associated with Oracles. These DeFi projects are then manipulated to sell at a spot value. Liquidity pools can also be drained through the employment of sham ERC-20 programmes to facilitate a flash loan attack.
BSC Dapps Worst Hit by the Hackers
Reports of flash loan attacks on BSC projects like Spartan, Belt Finance, PancakeBunny, and even Burgerswap have been making the rounds. Collectively, these platforms have lost $167 million in May alone. The consistent hacks came after a hack on ETH-based protocol BZX.
According to earlier reports, Pancakeswap had lost over $200 million to flash loan attacks. The developers however revealed that the cybercriminals only managed to make away with 114,600 BNB which equals about $45 million. Stablecoins in Bearn were also drained as well to the tune of $11 million.
Last month, AutoShark fell victim to the hacks as it lost $740,000 worth of BSC tokens. Analytical inconsistencies saw Spartan lose $30 million in an attack as well. However, even though it seems that Binance Smartchain based DeFi projects are mostly affected, Ethereum is hit once in a while too. A ETH-based project, Yearn Finance, lost over $11 million to a flash loan hack.
