Today, a popular non-custodial crypto exchange, LaunchZone joined the increasing list of DeFi platforms that have suffered exploitation on BNB chain. The protocol confirmed the exploitation of its network in its latest Twitter post. Worthy of note that the hack led to the loss of $700,000 worth of assets in its liquidity pool.
Through the $700,000 exploitation, LaunchZone has lost 80% of the total assets in its liquidity. In its announcement, the BNB-chain protocol said details about the circumstances that led to the exploitation are still sketchy. It promised to collaborate with relevant agencies to ensure proper investigation of the incident. Meanwhile, the exchange warned its users against purchasing its tokens until further notice.
LaunchZone pauses $LZ trading till further notice
According to LaunchZone, the exploiter has already exchanged the stolen funds through PancakeSwap. Occasioned by this development, the protocol resolved to suspend every form of trading and transferring of $LZ token until further notice. But, the exploitation has already impacted the token to plunge by over 80%.
Worth noting that this exploitation of LaunchZone is coming a few days after it partnered Web3 Lab. According to reports, it engaged in the partnership to foster the long-term development of web3, thereby aiding its global adoption. Just recently, it extended its coast to Arbitrum, a layer 2 scaling solution for Ethereum. By going live on this platform, its users are able to trade cryptocurrencies with lower transaction fees and enjoy faster trade confirmations.
Meanwhile, LaunchZone is not the only DeFi protocol that has suffered exploitation on BNB chain. Recall that in October 2022, Bitkeep, a multi-chain crypto wallet endured a similar exploitation on BNB. Then, the hacker stole not less than $1 million from the attack. Findings showed that the swap feature of the wallet was compromised, thereby allowing the hacker to carry out the illicit act.
Similarly, a cross-chain bridge, BSC token hub, also suffered exploitation on the same chain in the same month. The hacker of this protocol looted one million BNB reward and transferred it into a lending platform, known as Venus protocol. Last December, Ankr also suffered an exploitation on BNB. This exploitation led to the loss of eBNB tokens worth millions of dollars. Meanwhile, with the latest attack of LaunchZone, controversies are ensuing as regards the vulnerability of the BNB chain to exploitations.