Incident Overview
Diamond DND token was exploited for 223,335 $USD worth of $DND tokens. The exploiter used user approvals to drain funds.
Diamond DND is a BEP20 token trading on BiSwap. The exploiter user a smart contract with unverified source code, to transfer approved tokens of the users. 223,335 $USD worth of $DND and $BUSD tokens were swapped for $wBNB and then transferred to the malicious contract.
Consequently, all the stolen amount was sent to the attacker's address and the contract self-destructed. DND Exploiter performed another exploit just after this one, LaunchZone DeFi protocol was hacked by the same attacker for a much bigger amount...
Attacker address:
https://bscscan.com/address/0x7d192fa3…86aa1f
Malicious contract:
https://bscscan.com/address/0xc4bea60f…88a7e2
Token claim transaction:
https://bscscan.com/tx/0x876944e5…f39045
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 Diamond DND, these are the critical security checks that could have prevented this incident (February 2023).
- Verify all logic paths related to Other 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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