Spartan, the liquidity platform for Binance Smart Chain’s synthetic assets, lost $ 30 million in a coordinated attack on the liquidity pool late Saturday night.

The exploit was aimed at “incorrect calculation of the liquidity share” in SPARTA / WBNB’s liquidity pool, which allowed the attacker to withdraw funds, explained PeckShield, a blockchain security company. And the security expert continued:

“In particular, a particular breakout increases the pool’s asset balance before burning the same number of group tokens to claim an unnecessary large amount of the underlying assets. The consequences of this attack resulted in the loss of more than $ 30 million from the affected pool.”
The basics of the attack focused on processing Flash Credits, which were used to inflate pool balance before burning an equivalent number of Pool tokens.

Late on Saturday, the Spartan Protocol tweeted about the exploitation, stating that “the attacker spent $ 61 million in BNB crossing the clusters using […] a hitherto unknown economic exploit route to remove about $ 30 million from the pools.”

The latest update to the Spartan Protocol came early Sunday, as subscribers called the Bixchild Report:

According to Rekt, this attack is considered one of the greatest economic exploits in DeFi’s history. Only five other uses of DeFi resulted in the loss of many funds: EasyFi ($ 59 million), Uranium Finance ($ 57.2 million), Kucoin ($ 45 million), Alpha Finance ($ 37.5 million) and Meerkat Finance ($ 32 million). ).

The cost of SPARTA, the special Spartan Protocol token, fell 30% on Sunday to $ 1.17. It is down more than 29% versus Bitcoin (BTC) and 31.4% versus Ethereum (ETH).

Theft and exploitation is nothing new in the cryptocurrency community. In addition to DeFi’s recent series of attacks, cryptocurrencies stole around $ 1.9 billion in 2020, according to the Italian publication Finaria. Fraud was the most important cryptocurrency crime, followed by theft and ransomware. A year ago, in 2019, criminals stole cryptocurrency worth about $ 4.5 billion.

Source: CoinTelegraph