Binance Smart Chain’s Belt Finance loses $6.2 million in flash loan attack
- 31st May 2021
- Posted by: Hakeem
- Category: Crypto
The Binance Smart Chain (BSC) tokens have been under attack by hackers lately. The latest exploit comes in form of a flash loan attack on the Belt Finance platform.
Belt Finance (BELT) allows users to retain the stability of their asset positions and get maximum yields with minimal risk, including automated vault compounding and yield optimization strategies. They also provide loan services to their users.
The company announced on Twitter yesterday stating, “Partial funds of our 4Belt pool have been affected (Accurate amount will be announced soon). We are now analyzing and fixing our contract for safety. The compensation plan and an accident report will be up soon. Withdraw of BSC vaults will be paused until contract upgrade is complete.”
They later announced that they suffered a flash loan attack with losses amounting to $6.2 million in an incident report released by the team.
The incident report showed that the hacker stole $6.2 million worth of BUSD. The BUSD is Binance’s native USD-pegged stablecoin. Further, the hacker converted them to ETH via 1inch DEX partially withdrawn from Binance Smart Chain onto Ethereum. According to the firm, it happened in 8 transactions.
The team said they are trying to figure out what went wrong with the BeltTokens.
BeltTokens refer to the tokens you receive upon depositing into a Belt Finance vault. They are in essence, a deposit receipt and they represent liquidity provided in a Belt depositor contract. The team said its beltBTC, beltETH, beltBNB are ok. The team also mentioned that an announcement will be made soon on how they intend to move forward. Meanwhile, withdrawals from the site have been temporarily paused.
Last week, Binance Smart Chain’s Bogged Finance was also hacked and lost $3 million of its native token $BOG. This happened through a cryptocurrency phishing attack.
Belt Finance’s BELT is currently trading $29.11, down 16.80% in the last 24 hours.
What this means
With the growing increase in the use of cryptocurrencies, especially for decentralized finance (DeFi), more of these occurrences should be expected. The BSC network needs to be under scrutiny and investors are advised to be cautious when investing in DeFi listed on the BSC network.