A suspected exploit on Binance Smart Chain has drained about $88,400 from the BY token project, according to blockchain security firm TenArmorAlert. The firm flagged the incident after detecting irregular on-chain activity linked to the token’s smart contract and a series of transactions that generated profits in wrapped BNB.
TenArmorAlert reported the attack in a post on X, stating: “TenArmor Security Alert Our system has detected a suspicious attack involving #BY token on #BSC, resulting in an approximately loss of $88.4K.” Early findings suggest the attacker used smart contract interactions to move funds and profit from the exploit.
Attack linked to vulnerable contract logic
While investigators have yet to publish a fully reverse-engineered bytecode breakdown of the exploit, initial transaction analytics suggest the attack stems from a logic weakness within the BY token’s native smart contract.
According to data compiled by TenArmorAlert, the attacker interacted with the contract through another smart contract before executing a series of token transfers and swaps. Transaction data showed significant movements involving BY tokens and wrapped BNB. The attacker also routed funds through PancakeSwap liquidity pools before extracting value from the protocol.
BSC remains popular due to its low transaction costs and fast processing, which have helped attract developers and users. However, those same features have also made it a frequent target for attackers seeking weaknesses in smart contracts.
BSC faces continued security challenges
The BY token incident adds to a series of recent attacks targeting projects on Binance Smart Chain. Recently, Attackers drained about $243,000 from the ATM token protocol. According to CertiK, the attacker exploited a flaw in ATM’s transferFrom() function. The weakness allowed repeated abuse of an automated token conversion feature, resulting in substantial losses.
Separately, blockchain security firm PeckShield reported an attack on the LML staking protocol in April. The incident led to losses of nearly $950,000. PeckShield said the attacker used flash loans from several decentralized finance platforms to manipulate liquidity and token prices. The attacker completed the operation within a single transaction before extracting funds.
The recent BY token exploit shows the security issues on Binance Smart Chain. Developers keep launching new DeFi apps, but security firms constantly report hacks targeting weak spots in smart contracts and protocols.
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