Feb 27, 2023

$700K Stolen in LaunchZone DeFi Exploit

LaunchZone, a DeFi protocol running on the BNB Chain, has suffered a major exploit resulting in the loss of $700,000 worth of funds. On Feb. 27, the project reported that over 80% of funds in the LaunchZone liquidity pool had been drained.

The project’s Telegram group has issued a warning to users not to buy tokens until more information is gathered. Blockchain explorers have shown that the funds were swapped out through PancakeSwap.

The value of LaunchZone’s native token $LZ dropped by over 80% as a result of the attack. The project has over 44,000 members on its Telegram channel and some 275,000 followers on Twitter, but no warnings or announcements have been made to its large Twitter following. The project’s Facebook page has yet to respond to requests for comment from Cointelegraph.

The BNB Chain ecosystem has seen a number of hacks and exploits in the past year. In October 2022, the BNB Chain itself was the victim of a $100 million exploit, with attackers taking advantage of a cross-chain exploit. In February 2023, web3 infrastructure firm Jump Crypto identified and disclosed a critical vulnerability to the BNB Chain team that could have allowed an attacker to mint an unlimited amount of tokens via malicious transfers. The BNB team patched the vulnerability before it was disclosed to the wider public.

The exploit of LaunchZone is a reminder of the importance of security measures when it comes to NFTs and other crypto assets. An NFT marketing agency or web3 agency can help projects in the web3 space to promote and sell their NFTs safely, as well as helping to increase the visibility of the project and its NFTs through Twitter NFT marketing and other forms of NFT promotion.

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