Another digital asset hacking incident hits the headlines. Decentralized exchange (DEX) Level Finance has fallen victim to a mounting hack of digital assets, failing to prevent losses of nearly $1 million.
According to the statement from Level Finance, the exchange suffered a security breach due to a buggy smart contract causing a loss of approximately $1 million. As a result, the hacker siphoned 214,000 Level Finance (LVL) tokens from the exchange.
The hacked 214K Level Finance’s Native Token – LVL, was later swapped into 3,345 BNB tokens with an estimated value of $1.01 million,
This news caused a massive sell-off in LVL tokens. The panic sell-off caused the price of LVL tokens to fall by almost 25% from $8.4 to $4.2 levels within a few minutes. However, now the token price has recovered somewhat and is trading at $7.38 at press time according to Coinmarketcap.
Blockchain analytics firm Peckshield reportedly said, “a Level Referral Controller V2” contract bug left the victim Level Finance vulnerable to exploitation. The smart contract bug allowed hackers “repeated referral claims” from the same epoch.
After the hack, Level Finance confirmed the same via a statement on Discord and Twitter.
Level Finance stated on Discord that “the exploit was isolated from our other contracts,” which means its liquidity pools and related DAOs remain unaffected by the attack. Liquidity providers and DAO Treasury are not affected by the hack.
The decentralized exchange has paused the referral program until the bug is fixed, which could take up to 12 hours.
Also read: SushiSwap Suffers a $3.3 Million Exploit Due to Approval Bug
