Web3 crowdfunding launchpad Poolz Finance hacked for US$390,000 on BSC, Polygon
TL;DR Poolz Finance, a cross-chain crowdfunding launchpad for Web3 projects, was exploited for US$390,000 worth of digital assets on the Binance Smart Chain and Polygon blockchains. The exploit occurred due to an arithmetic overflow issue in the token vesting smart contract. Poolz Finance has created a new smart contract, restored the US$200,000 worth of liquidity on PancakeSwap from their treasury, and warned users not to trade the Poolz token.
Poolz Finance, a cross-chain crowdfunding launchpad for Web3 projects, has been exploited for US$390,000 worth of digital assets on the Binance Smart Chain and Polygon blockchains, according to an alert by blockchain security firm PeckShield on Wednesday.See related article: Bitcoin breaks US$26,000 as inflation cools in FebruaryFast factsThe exploit occurred due to a “classic arithmetic overflow issue, which is exploited to drain funds from the contract,” according to PeckShield’s Twitter post.PeckShield first spotted the exploit by observing a repetitive transaction pattern by the same sender in the token vesting smart contract.Poolz Finance is a decentralized crowdfunding platform, which allows Web3 projects to raise funding via initial dex offerings. To date, 96 projects have secured funding via Poolz.Poolz Finance said they will create a new smart contract, restore the US$200,000 worth of liquidity on PancakeSwap from the company treasury and has warned users not to trade the Poolz token. Following the exploit, Poolz’s governance token (POOLZ) fell 96% to US$0.15, in the 24 hours to 7:00 p.m. in Hong Kong, according to CoinMarketCap.See related article: Banks are bringing systemic risks to crypto, says Circle’s Disparte