Scam Sniffer, a prominent watchdog for cryptocurrency scams, has uncovered a major breach in the early contract Bscex SwapX of the LaunchZone project on the Binance Smart Chain (BNB). The scam has resulted in the loss of over $7.8 million in funds and has put 34,065 addresses at risk.
Longstanding Loophole in Wallet Address Authorization
Victims of the scam reported stolen BUSD which was traced back to an authorized SwapX contract (0x2658…) from over 700 days ago. This indicates that the loophole in the wallet address authorization project has existed for some time and gone unnoticed until now.
Hackers have been monitoring these vulnerable wallet addresses and stealing funds whenever they find them. The hack serves as a reminder of the importance of maintaining a secure and updated system to prevent cryptocurrency scams.