Bogged Finance’s Decentralized Finance Protocol Lost Nearly $4 Million Due to a Flash Loan Attack
The decentralized Finance Protocol (DeFi) Bogged Finance lost $3.6 million due to a flash credit attack. This was reported by the developers of the protocol in their blog.
In the attack, which was similarly carried out against PancakeBunny, the attacker was able to increase the balance of BOG tokens before selling them on the market. As PeckShield analysts found out, the incident occurred due to an error in the code that allowed the attacker to increase the balance by using self-transfer of tokens.
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With the help of a flash loan, the attacker generated over 15 million BOG tokens worth more than $15 million. After noticing the exploit in the BOG staking section, the attacker was going to cause token hyperinflation via flash credit. It is reported that the scale of the attack was limited within 45 seconds. Nevertheless, this was enough for the attacker to withdraw some of the funds.
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The project developers have already announced that the affected parties will receive BOG tokens in the coming hours. As part of the transition to a new contract, the developers will burn 7.5 million BOG. Bogged Finance also urged not to buy the token against the background of the identified exploit.
The consequences of the attack immediately affected the BOG token, which lost 100% of its value in a matter of minutes. Back on Sunday, May 23, the token was trading at $1.9. At the time of writing, its price is $0.00046608.
Bogged Finance is a protocol based on the Binance Smart Chain blockchain. It allows users to research and place orders for any token on the Binance blockchain network.
Since the beginning of May, this is at least the third attack using flash credit. Recall that previously unknown people attacked the DeFi protocols FinNexus and bEarn Fi. The total losses from the attacks amounted to more than $18.5 million.
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