BurgerSwap, a popular decentralized finance (DeFi) protocol powered by the Binance Smart Chain, has suffered a crippling flash loan attack.
The automated market maker has been drained of $7.2 million.
In its announcement, BurgerSwap claims that it will strive to cover all of its users’ losses:
The current total loss is around $7 million and we will strive to cover all your loss.
The DEX has suspended trading, claiming that its team is “working on the issue.”
JulSwap, another BSC-based DeFi protocol, appears to have experienced a similar attack, which caused a 95 percent price crash. JustLiquidity CEO TG Crypto claims there is no hack or exploit in a tweet.
A wave of attacks
BSC has had explosive growth because of its cheap fees, but a string of recent incidents has tarnished its reputation.
Last week, PancakeBunny was drained for 45 million. Spartan Protocol, bEarn Fi, Uranium Finance, and a few other protocols have also suffered the same fate.
Ethereum-based DeFi projects have also witnessed their fair share of exploits. As reported by U.Today, DeFi criminals raked in $240 million in only four months in 2021.