Hackers withdrew from the DeFi protocol Impossible Finance ETH in the amount of $500 000 – Bits Media

Decentralized Finance Protocol (DeFi) Impossible Finance, powered by Binance Smart Chain, attacked using instant loans. Hackers managed to deduce 229.84 ETH.

As a result of an attack on the liquidity pool Impossible Finance, which happened 21 June near 4:40 UTC, Hackers brought out 229.84 ETH in the amount of about $500 000. Watchplug security specialists reported, that hackers used vulnerability in the smart contract of the liquidity pool. This made it possible to conduct several transactions for the exchange of internal token Impossible Finance on Busd, And then on BNB to repay an instant loan.

However, the strangeness is, that swaps were carried out one after another at the same price, which is usually impossible to perform due to slipping. The developer of the decentralized exchange Sushiswap mudit gurapta (Mudit gupta) reported, that this incident is similar to the May attack on the Burgerswap protocol, which also operates on the basis of Binance Smart Chain. Then the attackers were able to withdraw crypto assets in the amount of about $7.2 mln.

In the case of IMPOSSIBLE FINANCE, The hacker also began to use the attack using fast loans, to “exhaust” liquidity pool using fake tokens, manipulating the market in their favor. Impossible finance management has stated, What compensates to users all lost funds.

Currently, all rewards of the liquidity pool Impossible Finance are suspended, And the project users are recommended not to be credited and not withdrawing funds for trading couples with BUSD and BNB. The project team said, what works with analytical companies Peckshield, Watchplug and other security specialists, To investigate what happened.

Note, that the attack on Impossible Finance occurred less than three weeks after, As a protocol collected $7 Milln in the round of financing, which was carried out with the participation of True Ventures, CMS Holdings, Alameda Research и Hashed. Initially, the project began to work on the basis of Binance Smart Chain, But in the future it is planned to switch to Ethereum and Polygon.

Recently, many projects have become victims of attacks using instant loans. One of them is Pancakebunny, who has lost crypto assets in the amount of about $200 million. Binance Smart Chain developers consider, that these attacks can be interconnected, and invited the projects to create reserve funds, to insure such situations.