Exploit of Fake ENA Token on Binance Launchpool Raises Concerns Amid Growing Crypto Hack Incidents

Exploit of Fake ENA Token on Binance Launchpool Raises Concerns Amid Growing Crypto Hack Incidents

Crypto News – Shortly after the launch of Ethena‘s new ENA token for farming on Binance, an incident unfolded involving the exploitation of a counterfeit token bearing the same name as Ethena Labs’ genuine ENA token. The exploit resulted in the misappropriation of 480 BNB tokens, valued at $290,000, from the Binance launch pool designated for farming activities.

The precise vulnerability exploited in this incident remains undisclosed. On-chain security firm PeckShield promptly reported the occurrence at 8:31 am UTC on March 29 through a post on X platform, initially misidentifying the counterfeit token as the authentic ENA token developed by Ethena Labs.

Ethena Labs formally introduced its ENA token on the Binance Launchpool on March 29. Remarkably, the exploit targeting the counterfeit token, which bears no affiliation with Ethena Labs, transpired mere hours subsequent to the announcement of the token’s listing, causing widespread confusion within the community.

Prior to this incident, Ethena Labs had garnered attention for its launch of the USDe synthetic dollar on the public mainnet on February 19. Notably, Ethena achieved the status of the highest-earning decentralized application (DApp) in the cryptocurrency sphere on March 8, offering investors an enticing annual percentage yield (APY) of 67%.

Despite the significant sum involved, this exploit ranks on the lower end of the spectrum in terms of cryptocurrency hacks. Notably, it occurred in the aftermath of the over $11 million Prisma Finance hack on March 28.

Cryptocurrency hacks persist as a persistent challenge within the industry, exacerbating concerns surrounding investor confidence. According to data from blockchain security firm Immunefi, the cumulative loss attributed to hacks and rug pulls in 2024 amounted to over $200 million across 32 distinct incidents leading up to February 29, marking a 15.4% increase compared to the figures recorded in January and February 2023, where digital assets worth $173 million were compromised.

Immunefi’s report from December 28 revealed that the total losses incurred from crypto hacks and fraudulent activities in 2023 amounted to $1.8 billion, with 17% of these losses attributed to the activities of the North Korean Lazarus Group.

The pinnacle year for cryptocurrency hackers was 2022, witnessing a staggering $3.7 billion in funds compromised. However, this figure experienced a notable decline of 54.3% to $1.7 billion in 2023, as indicated in the ‘2024 Crypto Crime Report‘ published by Chainalysis.

Despite the decrease in total funds compromised, the frequency of incidents escalated from 219 in 2022 to 231 in 2023. Chainalysis attributes this significant annual decline to a reduction in decentralized finance (DeFi) hacking activities, stating:

“Hacks targeting DeFi protocols were primarily responsible for the substantial surge in stolen cryptocurrency observed in 2021 and 2022, with cybercriminals siphoning off over $3.1 billion through DeFi hacks in the previous year. However, in the current year, hackers managed to seize only $1.1 billion from DeFi protocols, reflecting a 63.7% decline in the overall value extracted from DeFi platforms year-on-year.”