Two projects built on the blockchain Binance Smart Chain have suffered flash loan attacks, in which hackers use large uncollateralized loans in order to manipulate the ratio of assets in pools and withdraw liquidity.
DeFi project BurgerSwap has lost $7.2 million as a result of the attack. The developers have said the project will attempt to recover the funds from all affected users. A BurgerSwap spokesperson has stressed the project team is working to fix the problem:
"BurgerSwap just experienced Flash Loan attack. We have suspended Swap and BURGER generation to avoid further loss. Our tech team is working on the issue and will publish the solution later. More details will be published soon."
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The hackers have exploited a vulnerability that allowed them to perform repeated trades before updating the reserves, which are used to calculate the number of tokens in a transaction.
For its part, the project JulSwap has suffered a similar attack. Both are building DeFi platforms, and JulSwap advertises itself as "an enhanced Uniswap on the BSC." The price of the JulSwap token (JULD) has dropped more than 50% following the attack, however, it has already managed to recover some of the drop. As for BurgerSwap (BURGER), the token has suffered a more moderate decline.
Crypto exchange Binance, the developer of the blockchain on which both projects are based, has announced in the past it is unable to help users in such situations.