Crypto DeFi Sector Loses $6 Million to Flash Loan Attackers

One after another, the DeFi sector was attacked by flash loans and, resultantly, the sector lost US$ 6 Million to the attackers. The initial probe revealed that both the attacks stemmed from the same DeFi project namely Binance Smart Chain. The first victim of the attack losing US$ 3 Million was Pancakebunny and the second was Bogged which too lost US$ 3 Million to the attackers.

Some two weeks ago, a report surfaced within the crypto world suggesting that cybercriminals have turned their focus on DeFi.

DeFi is the latest product of crypto which is called decentralized finance i.e. DeFi. Since the times of initial lockdowns, this digital product continued to be utilized on a widespread basis. However, while the crypto industry was also surging, it simultaneously continued to incorporate advanced security protocols. Before 2020, there was a high number of criminal activities targeting cryptos such as crypto Ponzi schemes, frauds, and thefts. However, with the adoption of advanced security protocols, a large number of exchanges were able to curtail crypto crimes.

Although there were still several non-ignorable crypto crime incidents, yet more or less they have reduced down considerably.

Keeping in view this a report was published recently in which the analysts had suggested that crypto criminals’ next target is DeFi. This report was duly published by an independent and privately run intelligence firm. The analysts had suggested that since many of their attempts had earned criminals nothing, therefore, they are coming for DeFi now.

It has only been two weeks after the publication of the report that DeFi sector had been attacked by malicious actors.

It was complained off that two attacks had occurred at two different platforms and a loss of US$ 6 Million has been caused. As per the initial probes of both the incidents, it was found out that the attacks were the kinds of “flash loans”. It was reported that the culprits had targeted two DeFi projects and successfully breached the parameters and drained out the funds.

The first attack took place at a project known as Pancakebunny which announced from its official Twitter account about the hack. The company told its customers and fans that the exploiter has looted US$ 3 Million and executed the attack by using a notorious “flash loan”. The company also said that they are currently conducting an inquiry, the report of which will be shared with the customers upon conclusion.

However, there was another flash loan attack and this time the attackers victimized Bogged Finance. As was with Pancakebunny, the attackers looted BOG token worth US$ 3 Million on 28th May 2021. Apparently, the attackers are out there and trying to steal public money. Both of these DeFi projects i.e. Bogged Finance and Pancakebunny were running transactions through the blockchain system of Binance Smart Chain, whose security protocols were ultimately breached for crypto theft.

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