April 19, 2024
Ethena Labs Suffers $290k Loss on Binance Launchpool
Altcoins News

Ethena Labs Suffers $290k Loss on Binance Launchpool

Hours after the launch of Ethena’s new ENA token for farming on Binance, the platform fell victim to a significant exploit, resulting in the loss of 480 BNB tokens valued at $290,000.

Exploit Details

The vulnerability leading to the exploit remains undisclosed as of now. On March 29, at 8:31 a.m. UTC, the incident was reported by on-chain security firm PeckShield in an X post.

Timeline of Events

Ethena Labs introduced its $ENA token on the Binance launchpool just hours before the exploit occurred. This allowed users to farm the token by staking BNB or FDUSD.

Prior to this incident, Ethena Labs gained prominence in the crypto space. The company launched its USDe synthetic dollar on the public mainnet on February 19. By March 8, Ethena emerged as the highest-earning decentralized application (DApp) in crypto, offering investors an impressive annual percentage yield (APY) of 67%.

Context: Crypto Hack Landscape

While the $290,000 loss in the Ethena Labs exploit is substantial, it’s comparatively modest within the realm of crypto hacks. Just a day before, Prisma Finance suffered an over $11 million hack on March 28.

Crypto hacks remain a persistent challenge, undermining investor confidence in the industry. According to blockchain security firm Immunefi, as of February 29, 2024, over $200 million worth of crypto had been lost across 32 individual incidents in the year.

Previous Trends and Reports

Comparing the figures, the $200 million loss in 2024 signifies a 15.4% increase from January and February 2023, during which $173 million worth of digital assets were stolen.

In a report dated December 28, Immunefi highlighted that a total of $1.8 billion was lost to crypto hacks and scammers in 2023. Notably, 17% of this staggering sum was attributed to the North Korean Lazarus Group.

Source: Chainalysis

The recurring incidents of crypto hacks underscore the need for enhanced security measures and regulatory scrutiny within the industry to safeguard investor funds and maintain trust in the burgeoning crypto ecosystem.

Image by freepik

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