Altcoin $1.4 Million Attacked: Token Price Reset!

An altcoin project’s token price was reset after $1.4 million was stolen from its liquidity pool.

On September 10, it was reported that $1.4 million worth of Bows Coin Synthetic US Dollar (BSC-USD) was stolen from CUT token liquidity pools.

According to a report by blockchain security platform CertiK, the attacker obtained this amount by draining the pool through an unverified contract.

The incident took place in a liquidity pool on the Pancakeswap exchange, and the CUT token in the pool was tied to a separate contract that set the “future yield” parameter. It was reported that BSC-USD was withdrawn from this contract by an unknown method.

CertiK shared the details of the incident on the X (formerly Twitter) platform.

The attacked CUT token is located at an address ending in 36a7 on Binance Smart Chain. It was stated that it has no connection to the Crypto Unity project, which has the same symbol but a different address. It was reported that other liquidity pools on Pancakeswap were not affected by this attack.

Blockchain data shows that the attacker carried out four separate transactions to drain the pool. It was revealed that a total of $1,448,974 worth of BSC-USD was withdrawn from the pool.

Interestingly, it was stated that the attacker did not deposit any money into the pool beforehand and did not own any liquidity provider tokens, which eliminated the possibility of the transaction being a legitimate withdrawal.