Another Binance Smart Chain (BSC) based decentralized finance (DeFi) project has been hit by an attack. The hacker managed to get more than $7 million through a so-called flash loan attack on BurgerSwap. This is not the first time this has happened.
BurgerSwap is a DeFi application built on BSC and allows users to exchange, or swap, tokens for other BSC tokens. In addition, users receive compensation when they provide liquidity to the platform and its users.
The attack took place on May 28. International Hamburger Day is therefore not going so well for BurgerSwap. The hacker created his own Fake Coin and created a routing from BURGER, BurgerSwap’s native token, to Fake Coin and then to Wrapped Binance coin (WBNB). The hacker then managed to manipulate the price through a number of actions.
This is what the hacker managed to loot:
- 4.4k WBNB ($1.6M)
- 22k BUSD ($22k)
- 2.5 ETH ($6.8k)
- 1.4M USDT ($1.4M)
- 432k BURGER ($3.2M)
- 142k xBURGER ($1M)
- 95k ROCKS
The total loot thus amounts to just over $ 7 million at the time of the attack. As mentioned, it is not the first time that hackers have misused the flash loan function. A few days ago, we saw the same thing happen to Bogged Finance and PancakeBunny. Both are also built on BSC.
BurgerSwap reports in a tweet today that it will later come up with a detailed compensation plan to compensate for the damage.
BURGER’s price appears to be holding up reasonably despite the attack. It can often be seen that the native token of a platform goes down hard after such an attack. BURGER has fallen in price, but did so at the same speed as the rest of the market.