Impossible Finance Loses $ 500,000 In Latest DeFi Flash Credit Attack

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The latest Decentralized Finance (DeFi) protocol to join the long list of exploited Binance Smart Chain projects is Impossible Finance.

Another day, another exploit using DeFi Flash Credit on Binance Smart Chain. This time, the victim was the Impossible Finance multi-network incubator project.

According to the post on the project website Twitter and Telegram on June 21st, there was an urgent loan attack on the Impossible Finance liquidity pool, which resulted in a loss of about 230 ETH.

“Earlier today, there was an attack on our IF token. We are working with PeckShield, Watchpug and other community commentators to investigate the situation and prepare a detailed report on the events. “

Wannabe DeFi Attacker

SushiSwap core developer Mudit Gupta noted that it was an attack similar to the one that used the BurgerSwap protocol at the end of May. Then the attacker managed to withdraw more than $ 7 million from the protocol issuing flash credits using a fake token.

Security firm WatchPug explained that the hacker made several swaps in a row at about the same price and emptied the liquidity pool by adding “which is usually impossible” due to slippage.

A vulnerability in the pool’s smart contract allowed an attacker to repeatedly swap his own IF protocol token with BUSD and then with BNB to repay the flash loan.

The Impossible Finance team has confirmed on Telegram that it has allocated an insurance fund to compensate liquidity providers,

“We’ve also prepared an insurance fund to keep your funds safe and our number one priority. All user funds deposited in liquidity pools (LP) BEFORE the attack will be compensated for 100%. “

Impossible finances raised $ 7 million from an extensive list of venture capitalists and business angels. in early June to build a BSC incubator platform for multi-chain DeFi startups.

He joins the long list of BSC-based DeFi protocols in use this year, including: Pancake, Cream Finance, earn, Stuck finances, Uranium Finance, Meerkat Finance, SafeMoon, Spartan Protocol and Belt Finance

The BSC itself claimed that the wave of attacks was organized and targeted

IF token price tags

The IF token predictably plummeted today, dropping more than 60% from a high of $ 2.80 this time on June 21 to $ 0.14, and then recovered to just over $ 1 at press time.

According to CoinGecko, IF is currently trading 86% below the all-time high on June 19 of $ 7.61.



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