Connect with us

News

Justin Sun Led DeFi Protocol Suffers a Huge Exploit

mm

Published

on

VOC, Voice of Crypto, Crypto Hack

According to a tweet from PeckShield’s automated detection system, it is now clear that the Tron-based Just token has been exploited due to its slippage again.

Less than a few days after the Binance Shart Chain exploit involving the theft of 2 million BNB worth about $500 million, another blockchain ecosystem has suffered a hack.

In this exploit, the attackers have managed to transfer almost 4,600 BNB worth about $1.25 million to Tornado Cash, leaving about 2,555 worth over $693,000 still sitting in their wallets.

On-Chain data showing details of the exploit 

On-Chain data showing details of the exploit | Source: @PeckShieldAlert

The JUST Ecosystem

JUST is a Tron-based Defi protocol that aims to provide all-in-one financial solutions to its users.

Created by Justin Sun, JUST was launched in Q3 of 2020 and is named after its founder. On the JUST platform, users can choose between several Defi protocols, like lending and swapping several on-chain tokens. Built on the Tron ecosystem, the JUST protocol has JST as its native cryptocurrency and USDJ as its native stablecoin.

However, in JUST’s history, something similar to this hack happened a few years ago.

Advertisement

JST has been in circulation since May 2020. Around the same time, PeckShield had reported a 65% slippage on the JST token. And in June 2020, an address bought some JST with a total dollar value worth as much as 300 BNB.

For perspective, slippage refers to a market situation in which the trading participant receives a different trade execution price than expected.

A slippage of 65% is a huge one. And when the owner of the JST address placed a trade for $JST worth 100 BNB, the total tokens transferred to them amounted to about 3000 BNB.

Soon after, the address’s owner dumped these tokens transferred to them by the protocol’s shortcomings, transferring 800 BNB to Tornado Cash and making a huge profit.

JST Price Analysis

It is hard to tell whether the dip in JST is a result of the exploit on the JUST ecosystem or whether the 5% dip over the last day is a result of the $11B liquidation in the overall crypto market over the last 24 hours.

At the time of publication, JST is trading at around $0.02723, dropping 5.26% in price over the last 24 hours. The trading volume is also down by 30%, with a market cap of about $269 million.

Advertisement
Data from CoinMarketCap showing price performance of Just

Data from CoinMarketCap showing price performance of Just | Source: CoinMarketCap

According to data from DefiLlama, the Tron blockchain is currently ranked the second largest in the world in terms of Total Value Locked (TVL) in its Defi protocols, only coming behind Ethereum.

Data from DefiLlama showing TVL data on Tron 

Data from DefiLlama showing TVL data on Tron | Source: DefiLlama

At the time of writing, the Total Value Locked in the Tron ecosystem is about $5.53 billion, with a 24-hour drop of 1.30%.

 

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

 

 

 

Advertisement

 

 

 

 

Advertisement

Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.

Newsletter

Trending