Binance Labs-backed OpenLeverage suffers $236k exploit

OpenLeverage, a decentralized money market protocol that doesn’t require permission, is said to have suffered a loss of approximately $236,000. This loss reportedly occurred due to an alleged hacker attack that was financed using Tornado Cash.

OpenLeverage, a decentralized cryptocurrency margin trading platform, is reportedly the victim of a hack, with losses estimated to be around $236,000. According to CybersAlert, the funds used for transaction fees in the attack were traced back to Tornado Cash, a crypto mixing service that has been blacklisted by OFAC (Office of Foreign Assets Control). However, the details of the attack are still under investigation.

🚨WARNING🚨: Our system has identified several transactions involving OpenLeverage, totaling approximately $230,000 in losses. The funds were allegedly funded through TornadoCash. Our system managed to identify the malicious contract deployment 13 seconds before the attack transactions took place. The stolen funds are currently believed to be in the possession of the attacker.

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) April 1, 2024

After the announcement of the security breach, the OpenLeverage team made an assurance to their customers that the accumulated insurance and buyback funds would be sufficient to compensate for any losses incurred. Additionally, they clarified that the DistrictOne game, which operates on the OpenLeverage platform using blockchain technology, remained unaffected by this attack.

“OpenLeverage protocol is paused; the investigation is underway.”

OpenLeverage

In December 2021, OpenLeverage was introduced on Ethereum. Then, six months later, in June 2022, OpenLeverage received investment from the venture arm of Binance, named Binance Labs. The specifics of the financial deal were not shared, but Binance Labs emphasized the importance of this investment.

OpenLeverage announced through the exchange that they would utilize the acquired funds to boost their presence on BNB Chain (previously known as Binance Smart Chain) and construct a multi-chain system. This expansion includes plans to extend to other EVM-compatible networks, such as Polygon and Avalanche, in addition to layer-2 solutions like Arbitrum and Optimism.

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2024-04-01 11:35