Some of the stolen funds from Pancake Bunny, a DeFi protocol on the BNB Smart Chain, were moved through the privacy protocol Tornado Cash after being inactive for three years.
Pancake Bunny was hit by a flash loan attack in May 2021, losing about 697,000 BUNNY tokens and 114,000 BNB. This caused the value of its BUNNY token to drop by 95%.
The Solution After the Problem
Despite attempts to recover, PancakeBunny ended up shutting down and turning into a decentralized autonomous organization (DAO). But the story didn’t end there. Three years later, on July 7, 2024, something surprising happened: funds connected to the original hacker were mysteriously moved.
According to CertiK, a blockchain security firm investigating these incidents, the hacker now has $11.4 million in DAI. This shows how serious these breaches can be for both protocols and investors.
In response to the increasing threat of DeFi hacks, CertiK has strengthened its defences. They moved their blockchain applications to Alibaba Cloud to improve security and management. This move not only boosts CertiK’s abilities but also highlights the importance of proactive security measures to protect DeFi protocols from hackers.
Nicholas Percoco, Chief Security Officer at Kraken, highlighted the complex nature of blockchain security. He mentioned a recent incident where a security researcher, who turned out to be from CertiK, was accused of extortion after finding vulnerabilities in Kraken’s systems.
The DeFi landscape is constantly changing, requiring ongoing vigilance and new security practices. As blockchain technology evolves, the lessons from PancakeBunny’s rise and fall will help build stronger, more resilient decentralized financial systems in the future.
Editor: Lydicius
