Incident Overview
LPC token experienced an exploit that resulted in the loss of 45,304 $USD of liquidity from its pool.
LPC is a BEP20 token trading on PancakeSwap. On 25 July 2022, the project was exploited by an attacker who took advantage of a contract vulnerability and drained 45,304 $USD from its liquidity pool. The malicious actor exploited token contract vulnerabilty that allowed the transfer transactions to multiply the token amount and gain new $LPC tokens for nothing.
As a result, there was significant slippage on LPC with over 99% drop in price. All the stolen funds were transferred through TornadoCash.
Attacker address:
https://bscscan.com/address/0xd9936ea9…57481c
Malicious transactions:
https://bscscan.com/tx/0x0e970ed8…04ed8c
https://bscscan.com/tx/0xbd7ecaf0…0ddb8b
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 LPC Token, these are the critical security checks that could have prevented this incident (July 2022).
- 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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