Two Binance Smart Chain Projects Hacked

Binance Smart Chain has lost $14.4m in funds in another series of hacks of projects.

According to Peck Shield the two projects hacked were Dego Finance and Cocos-BCX.

The incident happened on Wednesday evening when it was discovered the liquidity pools for both projects had been stolen.

Dego Finance was the larger of the two projects and lost the most funds out of the hacks. The two hacks combined equated to $9m in lost BNB and $4.4m in BSC pegged Ethereum. Peck Shield was not able to identify the hacker.

Dego Finance announced the hacker was able to obtain the funds through a stolen private key. The team was quick to announce the source of the hack as many users had accused the project of a ‘rug pull’.

Dego Finance has reached out to various exchanges and asked for the funds to be blacklisted from trading. Coco-BCX has still not made any announcement about the hack on their social media pages.

Peck Shield has stated that it is possible that both projects had encrypted and stored their private keys on one device. This is how the hacker was able to compromise two projects at the same time.

Dego Finance is a decentralized finance platform which allows users to create their own NFT and DeFi products. Its platform is intended to function as a building block for content creators to make their own products easily.

Coco-BCX is a GameFi project that focuses on incubating and helping development of new cryptocurrency gaming products.

Binance Smart Chain is a centralized copy of the Ethereum blockchain. It grew in popularity with users due to the cheap transaction fees and easy access.

Unfortunately for the blockchain, it has grown into a hub where many scam projects and faulty smart contracts have been built.

A majority of hacks over the last year have targeted projects on Binance Smart Chain giving a bad reputation to the blockchain.

Cryptocurrency communities have begun to dub Binance Smart Chain as Binance ‘Scam’ Chain due to the growing number of bad projects being built on the platform

Should this trend continue, the number of users on Binance Smart Chain could continue to drop.

 

Source

Updated: 02/14/2022 — 16:00