The controversial Binance Smart Chain is back in the news. Binance thinks it is an organized group attacking projects on their chain and is demanding action from projects.
“Well organized hackers are targeting BSC now”
The tweet that Binance posted explains that they believe a group of hackers is working together to carry out the Flash Loan attacks. Their message to the community on the Binance Smart Chain is that it is a very challenging time for them, and they are calling for actions from projects built on BSC.
They ask projects to put more time and effort into health checks and to work with better audit firms. They also hope that projects plan a contingency plan for the worst case scenario if it really happens.
There are >8 #flashloan hacks recently, we believe, an well organized hackers are targeting #BSC now. It is very challenging time for the BSC communty. We are calling for the actions for all the #dapps:
— Binance Smart Chain (@BinanceChain) May 30, 2021
The BSC network has become a magnet for flash loan attacks
Within a short period of time, there were eight flash-loan attacks on the Binance Smart chain. The two most notable ones are Pancake Bunny and Uranium Finance. It is not clear how many dollars the attackers captured in total, but it is estimated to be in the hundreds of millions of dollars. The reason it was possible to steal the money is because of flaws in the code used in these projects that allowed the attackers to exploit it.
There is another theory being discussed on Twitter. There’s no evidence for it, but they think the projects were scams from the start. And that they’re disguised their rug pulls as a hack.
If you are interested, we covered the latest attacks in the article here