$700K Funds Siphoned From BNB Chain-Based DeFi Protocol

1. A DeFi protocol on the BNB Chain gets hacked.
2. The protocol is LaunchZone which is currently investigating the situation.
3. A total of $700,000 has been drained leading to the value of $LZ to drop by 80%.

The BNB Chain lays witness to an attack on a DeFi protocol within its ecosystem. In detail, the protocol in question in LaunchZone. The hack has led to a theft of $700,000 in funds being drained out of the protocol’s liquidity pool. In detail, the attack seems to have originated from DND exploiter.    

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According to the tweet above, LaunchZone, the DeFi protocol on the BNB Chain, is alerting its users about the situation. So far, it has observed a drain of $700,000 worth of funds due to an exploit carried out by an attacker. 

Presently, it is true that more than 80% of funds in the LaunchZone liquidity pool were affected. In turn, the value of its native token $LZ dropped by over 80%. In light of this situation, the project warns users not to buy tokens until more information is gathered.

LaunchZone has a large following on social media. Yet, it has only made a single announcement to its Twitter followers. They say more updates will be shared as the team is still investigating the situation. Above all, the protocol advises its followers to keep calm.

This incident follows other hacks and exploits in the BNB Chain ecosystem, including a $100 million exploit in October 2022, which led to a hard fork. Similarly, a vulnerability identified by Jump Crypto in February 2023 was patched by the BNB team before disclosure to the public.

Binance is all about community inclusivity, knowledge building, and educating the masses. We can be certain that the teams are working together behind the scenes to do the needful. Historically, BNB Chain has always updated the public once the full situation has been assessed.

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