In another cyber-attack on a decentralized financial platform based on Binance Smart Chain fell victim to hackers on Wednesday, with as much as $45 million drained from the ecosystem. Per the report, the hacker used the bug to mint a significant amount of bunny tokens and sold them for Binance’s token.
Although the latest hack did not directly affect the platform’s vaults, it pushed the token’s value into red, affecting almost all global investors. The crypto platform revealed in its report that the attackers exploited a bug that was related to the PancakeBunny’s minting count.
The calculation of newly minted tokens depended on the price value of the Binance token pool. It means that in the case of higher USDT or BNB ratios, the price of the pool will fall. In short, the price of the token could be easily manipulated based on the USDT and BND reserves.
But the fraudster used flash loans, including one from ForTube Bank and seven from PancakeSwap pools. Reportedly, the culprit borrowed $704 million worth of Binance tokens and $2.9 million worth of Tether tokens.
Then, those loans were used to manipulate the value of the BNB-USDT pool. Moreover, to provide liquidity to that poll, the attacker used a small portion of the flash loans.
After that, the culprit used the flash loan BNB tokens in the pool to manipulate the reserves, minting as many as seven million bunny tokens during the process.
The minted bunny tokens were sold for the Binance token, leading to a hundred percent crash in value. Before the attack, the token was being traded at $146 and later plunged to $0.9.
The attack resulted in massive losses for the token holders. In response, Pancakebunny took to Twitter and revealed that they were working on a compensation plan for the investors. The attacker ended up making more than forty-five million in profits after paying flash loans in BNB.