LaunchZone token collapses by 82% after hacking the platform of the same name

In total, the hackers managed to withdraw about $700 000 from the LZ liquidity pool

27.02.2023 - 16:10

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3 min

What’s new? On February 27, LaunchZone, a decentralized finance (DeFi) protocol running on BNB Chain from the Binance crypto exchange, suffered a hacking attack. A total of $700 000 (about 80% of the assets in the pool) was withdrawn from the project’s liquidity pool as a result of the exploit, and the native token LZ collapsed by 82,6% to $0,02641198.

News on the Cointelegraph website

What else is known? According to Cointelegraph, the attackers exchanged stolen assets on the decentralized exchange (DEX) PancakeSwap. The LaunchZone team confirmed the hack and decided to suspend trading and token transactions until the situation is resolved.

Please be informed that given the current situation, we have decided to pause the trading/transferring of $LZ token until the problems are solved. Thanks for your understanding and please keep updated! pic.twitter.com/CMz4I5V1wb — LaunchZone (LZ.finance) (@launchzoneann) February 27, 2023

In addition, DEX Biswap announced that it will delist LZ on February 27 at 17:00 UTC. Users were warned against making transactions with the asset.

Dear Biswappers,The $LZ token will be delisted within 5 hours due to its hack by the DND exploiter.❗️Please, don’t make any $LZ transactions at this stage❗️📍The @launchzoneann team is handling the situation.Stay safe with @Biswap_Dex. pic.twitter.com/sDesj4B8za — Biswap (@Biswap_Dex) February 27, 2023

LaunchZone DeFi platform, according to the developers, solves problems of low liquidity and slippage risk when making transactions. The project also provides a platform for startups to launch through fundraising. In addition to trading, it also offers staking services.

Last October 12, BNB Chain developers launched the Moran hard fork to fix a vulnerability that allowed hackers to withdraw $100 million in cryptocurrency from the network in an October 7 exploit. In December, the aBNBc token collapsed by 99,5% due to the hack of the Ankr DeFi protocol.

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