Ethereum and Binance Smart Chain Projects Lose $14.4M in Hack

The crypto sector recently witnessed another huge security breach, hitting both Ethereum and the Binance Smart Chain. The breach hit Cocos-BCX and Dego Finance, as an unknown attacker managed to get away with 14.4 million dollars. The nature of the attack suggests that the same team runs both Cocos and Dego Finance. 

The attack startled the market, seeing how both projects are based on two of the most well-known ecosystems. That is why traders feared that the news would affect the price of Binance Coin and Ethereum as well. Many experts predict Ethereum to outshine Bitcoin in the future. Visit here to learn more about the price predictions for ETH.

PeckShield, a security firm, informed users about the attack, stating an unknown breacher has drained 14.4 million dollars from the projects’ liquidity pools on PancakeSwap and Uniswap. The attack occurred on Wednesday around 23:30 UTC, costing the BSC project 9.6 million dollars worth of BNB. On the other hand, Ethereum wallet holders lost 4.8 million dollars to the attack. 

Since Dego aims to become a cornerstone of the decentralized market, the attack severely affects the platform. The platform has a native token called DEGO and an NFT ecosystem too. On the other hand, Cocos-BCX is an Ethereum-based GameFi enabler that focuses on promoting emerging GameFi projects via investing, community building, and incubating.

According to the Dego team, the attack was possible because a private key was compromised. The platform quickly asked other cryptocurrency exchanges to restrict the trading of DEGO tokens to prevent the attacker from liquidating the tokens. As soon as the news hit the market, DEGO lost 11.4% of its value, reaching 3.81 dollars from 4.50 dollars.

Similarly, Cocos-BCX also lost 3.4% value, reaching 1.54 dollars. No further news has been released about the attack, so the market is on its toes to find more information.