Binance Smart Chain Has Called Decentralized Finance Attacks Well Organized

There has certainly been a cause for alarm lately as a number of different protocols and exchanges are falling victim to flash loan exploits through which attackers are successfully stealing millions.

As a result, many of the cryptocurrency investors and BSC (Binance Smart Chain) supporters are demanding action and a response to these attacks. As of this point, a total of over $50 million in cryptocurrency assets have been stolen from exchanges such as JulSwap, Safemoon, Bogged Finance, bEarn, Meerkat Finance, Cream Finance, Spartan Protocol, Belt Finance, Uranium Finance, PancakeBunny, and BurgerSwap, which were also backed by BSC. This has led many to fear for their own cryptocurrency assets currently being held on various exchanges, and a lot of investors have hence moved their coins to vaults or cold wallets.

BSC claims attacks were organized

So far, the attacks seem to have been targeted at BSC directly, which has since become a sort of epicenter for crimes related to DeFi (decentralized finance) lately. Utilizing flash loan exploits, many protocols are falling victim to attacks that only serve to highlight the inferior system design and the potential for exploitation.

Furthermore, the Binance Smart Chain community has also since stated that the attacks may, in fact, be part of an organized crime spree, and as such, might all be connected. As such, it had been via a tweet earlier today that all projects which may be operating on BSC must exercise extreme caution and vigilance going forward and try to administer improved measures for risk control and prevention.

BSC community in turmoil

Needless to say, it is indeed a trying time for BSC and its community. What is even more alarming is the fact that numerous BSC-based protocols are very similar in infrastructure and design, so more attacks could occur at any given moment as the code, and design flaws can be easily replicated and subsequently exploited.

Moreover, as part of added security measures, BSC has stated that all projects should perform routine health and safety checks. It had also suggested that in the event of the projects being forked, then double as well as triple checks will additionally need to be conducted.

Lastly, all projects, exchanges, and protocols are advised to put contingency plans in place in the event that another attack happens and to adequately plan for any worst-case situations and scenarios. As such, many DeFi protocols formed compensation plans to be utilized in the event of an unexpected attack. Binance has even called upon the services of CipherTrace to provide additional analytics support.