Level Finance Exploit: How Hackers Stole 214,000 LVL Tokens

Flawed Smart Contract Leads to Theft

Decentralized Exchange (DEX) Level Finance suffered a security breach that led to the theft of over $1 million in its native $LVL tokens.

The attacker drained over 214,000 LVL tokens from the exchange before exchanging them for 3,345 Binance Coins. 

Blockchain security firm, Peckshield, has investigated the exploit and provided its insights. According to Peckshield, Level Finance's 'LevelReferralControllerV2' smart contract was flawed, allowing for repeated referral claims from the same epoch.

In addition, Binance's chain explorer BSC Scan revealed that the V2 controller smart contract called the 'claim multiple' function several times in the past two days. Meanwhile, the decentralized exchange has promised to deploy a new referral contract in the next 12 hours.

Additionally, Level Finance DEX noted that its liquidity polls (LP) associated with decentralized autonomous organizations (DAOs) were not affected. Level Finance stated that the attack was isolated from other exploits and that platform users should "stand by for a full postmortem."

Following the news of the attack and as the exploiter was selling Level ($LVL), the altcoin's price fell almost 50%. $LVL is trading at $7.65, down 11.36% in 24 hours, according to CoinMarketcap.