AST Token Hack

On January 21, 2025, the AST token on the Binance Smart Chain (BSC) was exploited, resulting in a loss of approximately $64,700 in USDT.

The exploit targeted a vulnerability in the AST token’s _transfer function during liquidity removal scenarios on PancakeSwap. When liquidity was removed, the logic incorrectly reduced the pair’s AST balance twice, creating an abnormally low reserve. This imbalance allowed the attacker to manipulate the automated market maker's pricing formula, enabling them to swap a small amount of AST for a disproportionately large amount of USDT.

The attacker repeatedly triggered this scenario by transferring small LP tokens to initiate liquidity removal, ultimately draining approximately $64.7K USDT, which was then funneled through Tornado Cash.

Attack TX:

https://bscscan.com/tx/0x80dd9362…793927