BCE token exploited for $800K via flawed deflationary mechanism that allowed an attacker to drain LP reserves using flash loans and leveraged borrowing.
Security & Exploits ·
A flawed deflationary mechanism in the BCE token enabled an attacker to drain approximately $800K from its liquidity pool by exploiting a logic error that burns tokens directly from the PancakeSwap pair. The attacker used flash loans and leveraged borrowing to accumulate a scheduledDestruction counter through repeated sales, then triggered transfers that burned the scheduled amount from the pair's balance and reset its reserves, leaving it with 36.6M USDT and only 10,000 BCE tokens. The token's market cap was estimated at $2.1M before the exploit, with the LP pool holding $1.6M in value prior to the attack.