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Uranium Finance exploited and $50 million stolen, another BSC rug pull?

  • Uranium has confirmed that it has been hacked while undergoing a scheduled migration – around $50 million hangs in the balance with the project saying it is working with the Binance security team to recover the funds.
  • Amidst growing concerns of protocol exploitation and DeFi rug pulls, transparency has become a big issue in the crypto community with investors having to be keen on projects they get involved with.

Uranium Finance has confirmed on Twitter that its scheduled token migration has gone wrong. The DeFi platform has fallen victim to an exploitation. The project, deployed on the Binance Smart Chain (BSC) in the last few hours alerted its concerned users that a Uranium migration was been intercepted, exposing around $50 million in funds. It is suspected that the error was a result of coding. Users active on the project’s Telegram account noted that this is the second time the protocol is being hacked.

Igor Igamberdiev, a research analyst, has been breaking down the hack. He notes that Pair contracts in Uranium v2 had a bug. This was exploited to withdraw almost all tokens due to a calculation error. The balances of these Pair contracts were also inflated. Due to the nature of the whole ordeal, Igamberdiev believes the project team made a rug pull.
The team believes that this hack is related to today’s migration, although anyone could have exploited it immediately after upgrading to v2. Also, for some unknown reason, the Uranium contracts repository has been removed from Github.

In addition to working with Binance to freeze accounts, the development team said it will report the case to law enforcement.

Uranium Finance investors cry to Binance

A new project in the crypto space, its unlikely to offer refunds making the case more intense for users. Most are pinning their hopes of recovering their lost funds on Binance. With the exploitation exposing a level of incompetence, the project finds it hard to pull in new investment.

Uranium Finance has touted itself as a Farming and Staking protocol with improvements from the PancakeSwap model. The website reads,

In our pools and farms, you’re rewarded with our U92 token, like every other DEX. The difference is that we have created a second token, the U92 counterpart: U235. Holding this token on your wallet makes you an investor of our AMM, making you earn dividends in BNB and BUSD every block!

Suspected rug pull

With the space seeing an increase in rug pull cases, the wider crypto community is closely watching to see if this is the latest. Also referred to as exit scams, it involves a team of developers draining the project’s funds.

The most recent and prominent rug pull is the Turtledex protocol. In this case, the team got away after raising roughly 9,000 Binance tokens. Soon after the funds were drained, social media accounts were deleted and the website was taken down, leaving clients in the dark.

Before this, there was the Meerkat Finance fiasco, which saw 13.96 million BUSD, plus 73,635 BNB cleaned out. Meerkat was a yield farming protocol running on the Binance Smart Chain. DODO DEX has also fallen victim to hackers with $3.8 million worth of tokens lost.

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John Kiguru is an astute writer with a great love for cryptocurrency and its underlining technology. All day he is exploring new digital innovations to bring his audience the latest developments.

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