Pancakebunny Tanks 96% Following $200M Flash Loan Exploit

BSC based DeFi protocol is facing vicious flash loan exploit
  • PancakeBunny had met a significant flash loan exploit where the hackers drained more than $200 million worth of crypto assets
  • The hackers manipulated the price of the BUNNY token, which surged tremendously from $150 to $240 before plunging back to $0
  • BUNNY/BNB is the only pool observed to be drained in the latest attack

PancakeBunny is the latest Binance Smart Chain (BSC) based decentralized finance (DeFi) protocol. Recently, the protocol has suffered a significant flash loan exploit that allowed bad actors to drain more than $200 million worth of digital assets. The protocol itself revealed the exploitation report via Twitter. According to the announcement, the network was subject to a flash loan attack from illicit actors. Moreover, the malicious individuals had borrowed bulk figures of Binance Coin (BNB) and manipulated the prices by dumping the BUNNY/BNB market.

PancakeBunny saw a significant BUNNY price fluctuation

The evil player pumped the price of BUNNY coins tremendously and dumped it within thirty minutes. At that moment, BUNNY was trading at the price level of $150, from where the price jumped to $240. And soon after the surge, the price plunged to $0 within just thirty minutes. However, at press time, the coin again began to surge and is trading at the level of more than $36.

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The hands behind the attack also attached a private note that contained a rabbit-themed pun to the transactions. The note consists of the message “ArentFlashloansEaritating.” However, all the funds borrowed to execute the attack have been returned by Pancakeswap.

BUNNY/BNB is the only pool drained

Following the scenario, it is found that the hacker must have made approximately 697k BUNNY and 114k BNB. Among which the BUNNY pool is the only pool that was laundered. And it is expected that the hacker must have made a total of $200 million worth of assets. 

However, the attack wreaked havoc across one of the BSC’s leading projects as the protocol represents a total value locked (TVL) of more than $1 billion before the hack. Hence, few observers are concerned whether Binance will move to roll back the incident.

Flash loans became most popular in the DeFi sector

Last month, Messari, a cryptocurrency data aggregator, revealed that flash loans are getting the most popular. Moreover, the DeFi sector has been experiencing a good count of such attacks. In the latest developments, PancakeBunny is the protocol facing such attacks. However, in total, the ecosystem accounted for roughly half of the $285 million worth of DeFi exploits that is being observed since 2019.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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