Incident Overview
On the 16th of April CROWN on the BSC chain was rugged for approx 50k USD.
The team responsible for managing liquidity in the CROWN protocol executed a liquidity removal scam, causing the project to suffer significant losses. The contract deployer removed a significant amount of liquidity pool (LP) and sold off the token, leading to a sharp drop of around 90% in its initial price.
Scammer:
https://bscscan.com/address/0xdcf1c636…3a4320
Liquidity removal:
https://bscscan.com/tx/0xdd6108d3…f809c7
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Crown Token, these are the critical security checks that could have prevented this incident (April 2023).
- Verify all logic paths related to Rugpull are guarded by proper access controls and input validation
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
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