BSC Community Calls for Protocols to Check for Security Breaches

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  • With several BSC-based projects being exploited, Binance Smart Chain now says organized hackers are targeting BSC.
  • So far this year, 9 notable BSC protocols were hacked, which accounts for a whopping $370 million in losses.
  • To avoid such incidents from happening, BSC advises the projects to check for security breaches.

Binance Smart Chain is asking all BSC-based protocols to check for security leaks and do code audits amid an increasing number of flash loan hacks and attacks.

2021 has been a very tumultuous year for Binance Smart Chain. At first, due to the rising transaction fees on the dominant blockchain network, Ethereum network, projects started to move towards BSC to enjoy lower fees. However, as BSC is now going through a number of hacks and exploits, it is becoming the polestar of DeFi crime.

In the last month alone, 6 major BSC protocols were hacked. In the most noticeable of these hacks, as covered by FullyCrypto, PancakeBunny fell victim to a $200 million flash loan exploitation.

Belt Finance Hacked for $6 million

Belt Finance is the latest project on BSC to get exploited. The exploit started on the final days of May, this year, as the hacker performed a flash loan attack utilizing a smart contract on the 4Belt BLP Pool, according to a report by Belt Finance.

The attacker repeated the exploit transaction, loaning a large amount of money and using them to manipulate prices, eight times and ended up raking in a total of 6.2 million BUSD.

The native token of this DeFi project, BELT, has gone down by more than half in value as a consequence of this hack. One day before the incident, BELT was trading at around $61. Though, it is now trading at around $30, according to data from Coinmarketcap.

BSC Community Gets Involved

So far this year, 9 BSC-based protocols have been exploited, accounting for a staggering $370 million in losses. And last month alone, 6 projects were hacked.

At such time, the Binance Smart Chain community steps in and asserts that “well organized hackers are targeting BSC now.” Considering the type of exploits (which were mostly flash loan attacks), and bearing in mind their close execution dates (6 hacks in one month), we can conclude that organized hackers are indeed targeting BSC.

To hinder such attacks in the future, BSC proposes a set of guidelines. To begin with, BSC advises several code checks and encourages code audits. It stresses forked projects, which are basically copies of other projects, to “double and triple-check” their changes.

Aside from this, all other directions are risk control proposals, which include live monitoring, an emergency plan for when an attack happens, and a bounty program to motivate users to collaborate with the protocols.