By Solomon Odunayo
BurgerSwap, a decentralized finance (DeFi) protocol built on top of the Binance Smart Chain (BSC), has just suffered a flash loan attack.
The new development was announced via the official Twitter handle of BurgerSwap a couple of hours ago. According to the report, the automated market maker lost a total of $7.2 million in the process.
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In the announcement, BurgerSwap claimed to have discovered the major source of the problem and assured its users that their losses will be covered
BurgerSwap stated:
BurgerSwap just experienced Flash Loan attack. We have suspended Swap and BURGER generation to avoid further loss. Our tech team is working on the issue and will publish the solution later. More details will be published soon. Thanks for your patience.
The current total loss is around $7 million and we will strive to cover all your loss.
We have allocated the problem and will surely work hard to cover users’ loss. Please stay tuned for detailed announcement.
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The decentralized exchange has suspended trading, claiming that its technical team is working on the issue.
In a similar scenario, a BSC-based DeFi protocol, JulSwap, was also attacked, causing a 95% price crash. However, JustLiquidity CEO TG Crypto, claimed there was no exploit or hack in a tweet.
Series of Attacks on Binance Smart Chain (BSC)
Although Binance Smart Chain (BSC) has had massive growth due to its lower fees, a number of attacks recorded lately have not been good for its reputation.
Just a week ago, PancakeBunny lost $45 million, while others such as Spartan Protocol, bEarn Fi, Uranium Finance, also suffered a similar fate.
However, this exploit is not limited to BSC. Ethereum-based DeFi projects have also experienced one type of exploit to another.
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