The number of attacks on various cryptocurrency exchanges and protocols has been increasing at an alarming rate, with BurgerSwap, which is based on BSC (Binance Smart Chain), being the most recent victim, having suffered a loss of $7.2 million.
This attack came at a time when hackers are utilizing flash loan exploits to successfully steal funds off of numerous crypto exchanges and protocols, as had been the case with PancakeBunny not too long ago and had resulted in the BUNNY token dropping in value by over 90% as investors no longer felt that their investments were safe. PancakeBunny had completely lost the confidence of its supporters, and it does not seem like it will be able to regain this confidence and support anytime soon, which would serve as a cautionary tale for other exchanges and protocols as well.
BurgerSwap suffers flash loan exploit-based attack
BurgerSwap has been quite the popular choice when it does come to DeFi (decentralized finance) protocols that are powered by BSC, but its future now remains uncertain thanks to the recent attack.
The attackers had utilized flash loan exploits, similar to what had been done with PancakeBunny, and as a result, a whopping $7.2 million have now been stolen. BurgerSwap representatives have stated that it shall be making efforts to ensure that all of the victims who had their funds stolen will be appropriately compensated for the losses experienced, a move that has become essential if BurgerSwap wants to remain functional and maintain the trust and confidence of its respective users. As of this moment, the DEX (decentralized exchange) has claimed that the issues are ‘being worked upon as we speak, but time will tell what will become of this.
As aforementioned, the attacks employing the exploits of flash loans have become increasingly commonplace, which has resulted in many investors, exchanges, and protocols entering a state of perpetual panic and paranoia.
Another Binance Smart Chain-based decentralized finance protocol by the name of JulSwap had experienced an attack of similar proportions not too long ago. Much like what had transpired with PancakeBunny, JulSwap experienced a decrease of over 90% as its price went crashing down.
Furthermore, BSC had experienced massive growth as of late as a result of its relatively cheaper fees. However, the string of recent attacks has led many to re-evaluate investments into BSC-based protocols. DeFi projects based on Ethereum had also been subjected to similar attacks and exploits in the past.