Ethena Labs, a project offering a synthetic dollar on the blockchain, suffered a security exploit on their $ENA token launch day. The exploit, reported by on-chain security firm PeckShield in X post, resulted in the loss of 480 BNB tokens, valued at roughly $290,000.
The vulnerability behind the exploit remains unknown. The attack targeted Ethena Labs’ token announced on the Binance Launchpool, a platform where users can stake cryptocurrencies to farm new tokens. Ethena Labs’ $ENA token had just been introduced on the Launchpool a few hours before the exploit was discovered.
While the sum stolen might seem insignificant compared to larger hacks that plague the cryptocurrency industry, the incident raises concerns about the security of new projects, especially during their launch phase. Ethena Labs gained popularity earlier in March when it became the top-earning decentralized application (DApp) due to its high annual percentage yield (APY) offering.
This exploit comes a day after another DeFi protocol, Prisma Finance, suffered a loss of over $11 million. These back-to-back attacks highlight the need for stricter security measures within the DeFi space.
Binance, the world’s largest cryptocurrency exchange, has not yet commented on the exploit or whether they will take any action to compensate affected users. Ethena Labs is also yet to release an official statement regarding the incident or any potential remedies for users.
The situation underscores the importance of thorough security audits for new cryptocurrency projects, particularly before launching on platforms like Binance Launchpool. Investors are advised to exercise caution when dealing with new offerings and conduct their own research before committing funds.
