LeetSwap Halts Trading Following $630K Drain from Liquidity Pairs

In a recent development in the crypto world, LeetSwap, an exchange operating on Coinbase’s Layer 2 blockchain Base, has halted trading.

LeetSwap Halts Trading Following $630K Drain from Liquidity Pairs

This decision comes in response to the draining of 340 ether (ETH) from its liquidity provider (LP) pairs. The exchange is currently working with on-chain security experts to recover the drained assets.

Security Breach Detected on LeetSwap

PeckShield, a blockchain security company, revealed in a tweet that LeetSwap had been attacked. In response, LeetSwap tweeted, “As our DEX is forked from Solidly, our factory had a security pause function. We noticed that some pool liquidity might have been compromised, and we temporarily stopped the trading to investigate.”

The decentralized exchange further advised its users who had not locked their liquidity to remove it from the pools.

Total Value Locked in LeetSwap Declines to %22 percents

Data from DeFiLlama shows a significant decline in the total value locked (TVL) in LeetSwap. The DEX peaked at a TVL of $41.2 million on July 31, which has since declined to $7 million as of August 1.

Previous Rugpull Incident on Base

This incident follows a recent rugpull event involving BALD, a memecoin operating on Base. The deployer of the token removed millions of dollars worth of liquidity, leaving its users in the lurch.