BNB Chain Security Breach Exposes Flaw in DTXT Contract

A recent security breach on BNB Chain's DTXT/USDT liquidity pool has resulted in the loss of approximately $35,041. According to blockchain security firm PeckShield, the incident was caused by a flawed mechanism within the DTXT contract.

The contract determined transaction types by comparing its own USDT balance with the amount deposited into the trading pair. The attacker exploited this flaw by sending a small amount of USDT directly to the contract address, causing a large sell order to be misidentified as a liquidity addition.

To execute the attack, the exploiter took out a flash loan of 1,077,400 $USDT from Moolah lending protocol. This capital was used to manipulate the pool's state and execute a profitable trade, netting a profit of roughly 35,000 $USDT.