• DeFi protocol WDZD Swap was exploited on May 19 for $1.1 million worth of Binance-Pegged Ether.
• An attacker conducted nine malicious transactions that drained 609 Binance-Pegged ETH from a contract associated with the WDZD project.
• A known exploiter labeled “Fake_Phishing750” created the contract that later drained the tokens from the protocol.
DeFi Protocol Exploited for $1.1M
Decentralized finance (DeFi) protocol WDZD Swap was exploited on May 19 for $1.1 million worth of Binance-Pegged Ether, according to a May 21 report from blockchain security firm CertiK. Binance-Pegged Ether represents Ether ETH $1,825 that has been bridged to BNB Smart Chain (BSC).
Attacker Conducts Malicious Transactions
According to the report, an attacker conducted nine malicious transactions that drained 609 Binance-Pegged ETH, worth $1.1 million at the time of the attack, from a contract associated with the WDZD project. The Telegram channel linked to its Twitter account has 28,000 members and it is promoted as a DeFi project running on BSC.
Exploiter Labeled “Fake_Phishing750”
Once the malicious contract was created, Fake_Phishing750 used it to perform nine transactions that drained $1.1 million of ETH from a Swap LP contract where it had been deposited. CertiK reported this exploiter was also responsible for an attack on another protocol called “Swap X” prior to this attack.
WDZD Promoted As A DeFi Project
WDZD claims to be a DeFi project running on BSC and is promoted by its 86,000 follower Twitter account @DZDDAO . It implies users can farm token called “WDZD” in exchange for staking ETH and may have also been sold in an initial DEX offering (IDO).
In conclusion, an unknown attacker exploited DeFi protocol WDZD Swap on May 19 for $ 1.11 million worth of Binance Pegged Ether using nine malicious transactions associated with a know exploiter labeled “Fake_Phishing750”. This incident highlights how important it is for users and developers alike to take precautions when dealing with cryptocurrency assets and protocols in order to prevent similar attacks in future cases