TenArmor flags suspicious asset movements involving multiple DeFi protocols.
Attacker moved assets through lending and swap protocols on BNB Chain
Photo Credit: Unsplash/Franck
BNB Chain ecosystem battles fresh security concerns as attackers have managed to exploit SKP-linked liquidity routes and drained nearly $212,000 (roughly Rs. 2 crore) from multiple DeFi protocols. Blockchain security firm TenArmor were the first to detect this suspicious activity on Tuesday, identifying unusual asset movements which involve SKP pools, PancakeSwap, Venus, and Lista DAO contracts. This incident once again sheds light on the growing risks tied to thin liquidity, pricing inefficiencies, and weak security measures across smaller decentralised finance markets.
As per the transaction records, the attacker made rapid moves across BSC-USD, BTCB, and SKP through multiple lending and swap protocols, after which the stablecoins and BNB were under the attacker's control. Initial transactions suggest the hacker was not directly pulling funds from wallets, but rather playing with liquidity issues. The hacker mainly took advantage of pricing inefficiencies among several lending platforms and DeFi pools. Therefore, this hack brought insight into the potential risks that smaller crypto exchanges could be vulnerable to when large trades take place.
The core cause associated with the hacking attack remains unknown to researchers as they continue to investigate the design of SKP tokens, liquidity pools and lending connections. Due to this, investors will stay sceptical of the liquidity pools related to SKP projects.
The SKP exploit is just the latest in a string of security failures and collateral damage that have plagued the decentralised finance space this year. Carrot, a Solana-based decentralised finance yield protocol, announced it was permanently shutting down operations, making it one of the first victims of the fallout from the Drift Protocol exploit in early April. In a post on X, Carrot stated that the Drift Protocol exploit was catastrophic and had left it financially bleeding and unable to continue.
Another DeFi protocol, THORchain, was added to the growing list of victims falling prey to such exploits. The DeFi liquidity protocol had paused all trading operations after ZachXBT, a blockchain investigator, exposed a suspected exploit of more than $10 million (roughly Rs. 95.8 crore). The halt came after the investigator flagged that the protocol had likely been exposed across Bitcoin, Ethereum, BNB Chain, and Base.
As per the data by DeFiLlama, April witnessed 25 crypto hacks, with a combined total of $630 million (roughly Rs. 6,028 crore) worth of losses, the worst month since February 2025, when crypto exchange Bybit was hacked for a record $1.5 billion (roughly Rs. 14,352 crore).
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