Bondly Finance urges users to stop trading following alleged exploit

The DeFi platform’s native token price dropped more than 60% following a compromise by an unknown party.

Decentralized e-commerce platform Bondly Finance is the latest decentralized finance (DeFi) platform to suffer an alleged exploit. The developer team advised the DeFi community to stop trading Bondly, the platform’s native token, following a suspected exploit on July 15. 

Bondly Finance has yet to provide details regarding the attack, aside from being compromised by an unknown party. “Rest assure, we have already taken action and will be operating as usual as soon as possible,” the official announcement reads.

Bondly token price tanked more than 60% within three hours following the attack. PeckShield, a blockchain security and data analytics company, explained the price drop with a 373 million token mint on the Ethereum blockchain. The security firm also claims that the huge mint on Ethereum was performed by the owner’s address, essentially accusing Bondly of performing a rug pull.

Founded by the former managing partner at Shuttle Capital, Brandon Smith, Bondly was launched on Polkadot in 2020 as a DeFi protocol to “offer an ecosystem of decentralized products that enable anyone to execute digital payments between peers,” the official description states.

Related: Growing pains? DeFi exploits plunder BSC, which calls for reinforcements

Flash loan attacks, rug pulls or exploits are not uncommon in the DeFi ecosystem. PancakeBunny, a popular decentralized finance protocol built on Binance Smart Chain (BSC), was the subject of an exploit in May after a hacker made off with more than $200 million worth of crypto assets.

BSC-based DeFi exchange BurgerSwap was also exploited by hackers with about $7.2 million worth of crypto assets, including Burger tokens, Wrapped BNB and Tether (USDT) stolen from the platform.

Another BSC-powered DeFi project, Bogged Finance, suffered a flash loan exploit that drained $3 million, which was half the liquidity on the platform at the time of the attack.