Fake ENA Token Exploited on Binance Launchpool: $290K Worth of BNB Lost

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Key Takeaways

  • The fake token shared the same name as the legitimate ENA token.
  • The incident unfolded shortly after the introduction of Ethena (ENA) on the Launchpool.

In a recent turn of events, a fake version of the ENA token was exploited on Binance Launchpool, resulting in the loss of 480 BNB, valued at around $290,000. This incident unfolded shortly after the introduction of Ethena (ENA) on the Launchpool, causing considerable confusion within the community. The counterfeit token shared the same name as the legitimate ENA token, exacerbating the situation.

Ethena’s inclusion on Binance Launchpool marked a significant milestone, being the platform’s 50th project. It allowed users to participate in token farming by staking BNB or FDUSD. However, the exploitation of the fake ENA token, just hours after its introduction, highlighted vulnerabilities in the system, although the precise nature of the exploit remains undisclosed.

Prior to this incident, Ethena Labs, the authentic creator of ENA, gained recognition for its synthetic dollar protocol, USDe, launched on the public mainnet. The exploitation of the fake token cast doubt on the security of such offerings in the cryptocurrency space.

Following the exploitation, PeckShield, an on-chain security firm, confirmed the counterfeit nature of the exploited token, emphasizing its lack of association with Ethena Labs. This revelation underscores the pervasive risks within the crypto domain, where malicious exploits and fraudulent activities continue to pose significant threats.

The incident comes amidst heightened concerns regarding security breaches in the cryptocurrency sector. Earlier this week, the decentralized finance (DeFi) protocol Prisma Finance fell victim to an exploitation, resulting in losses of around $10 million worth of cryptocurrencies. 

Furthermore, recent data from a Dec. 28 report by Immunefi reveals the alarming scale of losses incurred due to crypto hacks and scams in 2023, amounting to a staggering $1.8 billion. Of note, 17% of these losses were attributed to the North Korean Lazarus Group.

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Saniya Raahath
Saniya Raahath

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