BSC-Based Impossible Finance Suffers $500k Hack, IF Token Drops 70%

Impossible Finance, a DeFi protocol built on the Binance Smart Chain (BSC), suffered a security incident on June 21. The hack resulted in the protocol losing approximately $500k worth of Binance USD (BUSD).

According to a report by an auditing firm, Watch Pug, the incident exploited a vulnerability in the liquidity provider (LP) code for Impossible Finance. The hacker was then able to swap Impossible Finance’s token IF for BUSD for two times the normal market price.

The hackers then used Anyswap exchange to convert their BUSD loot into 229.84 ETH (worth roughly $500,000 at the time of writing.) The latest incident continues a growing list of exploits on BSC-based projects, with hackers enjoying a windfall.

Mudit Gupta, a core developer for the DEX platform, Sushiswap, notes that the Impossible Finance hackers exploited a vulnerability that was used to attack Burgerswap, another BSC-based project.

Impossible finance got exploited today for $500k.https://t.co/mzCPRluOjn

Same exploit as the burger swap one:https://t.co/3PkVtn7Hi7

If the original project gets hacked, why don’t the forks react?

— Mudit Gupta (@Mudit__Gupta) June 21, 2021

Impossible Finance token (IP) Drops 70%

Alongside a bearish Monday for the general crypto market, IP token dropped over 30% in the wake of the security breach. From a $3.79 high earlier in the day, the coin is trading at $1.128 at the time of writing and is now over 80% off its previous all-time high.

Earlier this month, Impossible Finance had reportedly raised over $7 million for its project and its roadmap includes plans to launch on Ethereum, Polygon, and other Layer-2 networks.