Incident Overview
Level Finance was exploited, resulting in the loss of 214,000 $LVL tokens worth approximately 2,780,320 $USD.
Level Finance is a decentralized perpetual exchange running on the Binance Smart Chain. The project suffered an exploit that had targeted their Referral Controller Contract. The attacker could claim referral amounts as $LVL tokens multiple times by executing multiple transactions to drain the contract.
As a result, 214k LVL tokens were drained from the contract and swapped for 3,345 $BNB which is equivalent to 1,097,160 $USD at current prices. All stolen funds remain controlled by the hacker who initiated this attack using the address: `0x61bb...412e` and holds them on another address: `0x7031...a9d5`. Fortunately, LPs and DAO treasury remained unaffected by this exploit since it was isolated from other contracts.
Attacker Address:
https://bscscan.com/address/0x61bbd8c1…29412e
Funds Holder Address: https://bscscan.com/address/0x70319d1c…20a9d5
Malicious Contract Address: https://bscscan.com/address/0xf08a01d2…a2f629
Affected Proxy Contract Address: https://bscscan.com/address/0x97708742…00063a
Affected Implementation Contract Address (LevelReferralControllerV2): https://bscscan.com/address/0x9f00fbd6…b2f464
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 Level Finance, these are the critical security checks that could have prevented this incident (May 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.
Free TrialSecurity Audit History
- Quantstamp Report
Sources & References
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