BNB LaunchZone Protocol Halts Trading After $700,000 Hack

BNB chain LaunchZone’s decentralized protocol loses $700,000 as attackers siphon liquidity from the protocol with Swapping pancakes decentralized exchange around 7:32 UTC on February 27, 2023.

LaunchZone team later suspended trading in its native token, LZ, which has since fallen 83% to around $0.000086.

BNB Chain DEX PancakeSwap shows an increase in LZ/BUSD trading volume

Following the announcement, Biswap, a decentralized exchange on the BNB chain, said it would remove the token from the exchange within five hours.

LZ is a management and utility token for the LaunchZone ecosystem that is compatible with BEP-20 token standard. The token has a total supply of 50,000,000. According to Coingecko, it is mainly traded on PancakeSwap, another BNB DEX.

Currently, the LZ/BUSD trading pair on PancakeSwap DEX has the highest liquidity. The transaction volume has increased by more than 7,000% in the last 24 hours to over $700,000, suggesting that it may have been used in an exploit.

LZ/BUSD daily trading volume
LZ/BUSD daily trading volume | source: PancakeSwap

This was recently reported by the analytical company Chainalysis DeFi exploiters stole over $3 billion in 2022, accounting for 82% of all crypto attacks. It uses targeted smart contracts that users used to transfer cryptocurrencies from one blockchain to another, called bridges.

Halborn’s chief operating officer, a DeFi a smart contract auditor, said many DeFi protocols are under attack because they are not investing enough security staff.

“A large protocol should have 10 to 15 people on the team. “The DeFi community generally doesn’t want better security — it wants to move to high-performance protocols. But these incentives lead to trouble down the road.

Earlier this month, quantitative trading company Jump Crypto discovered a security flaw in the Binance BNB chain that would allow unlimited BNB tokens to be minted on the exchange. The BNB Chain team reportedly resolved the issue within 24 hours.

Texas regulators block Binance.US takeover of Voyager assets

In others Binance Texas regulators filed court documents last week to block Binance.US from taking over the assets of bankrupt cryptocurrency broker Voyager Digital.

In a joint filing with the New Jersey Bureau of Securities on Feb. 24, 2023, Texas regulators stated that despite significant support for the Binance deal from Voyager’s unsecured creditors, creditors were not informed of Alameda’s $446 million return claim, which may reduce the claims of other creditors from 51% to 25%.

The U.S. Securities and Exchange Commission recently filed court documents alleging that Binance.US may be exposed to business risks from regulatory action, making it untenable to transfer customer assets from Voyager to Binance.US. maintenance.

A U.S. bankruptcy court judge in the Southern District of New York approved Binance.US’ acquisition of Voyager’s assets for $1.02 billion in January 2023.

Voyager Digital filed for bankruptcy in July 2022 after failed hedge fund Three Arrows Capital defaulted on a $654 million loan.

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BeInCrypto has contacted the company or person involved in the story for an official statement on recent developments, but has yet to receive a response.

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