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Hackers exploit token mimicking ENA after Ethena Labs announced a 750M ENA airdrop

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Hackers exploit token mimicking ENA after Ethena Labs announced a 750M ENA airdrop

  invezz.com 29 March 2024 12:06, UTC

Hackers exploit token mimicking ENA after Ethena Labs announced a 750M ENA airdrop

Hackers have struck the cryptocurrency market once again, exploiting a fake token bearing the name of Ethena Labs’ ENA token.

The incident occurred shortly after Ethena Labs made headlines with the announcement of a massive 750 million ENA token airdrop.

The exploit, discovered on the Binance Launchpool, underscores the ongoing challenges of security and trust within the crypto space.

The fake Ethena Labs token exploit

The exploit of the counterfeit token, which mimicked Ethena Labs’ ENA token, resulted in the loss of approximately $290,000 worth of tokens on the Binance Launchpool.

PeckShield, a leading on-chain security firm, reported the incident, highlighting the vulnerability that allowed hackers to capitalize on the confusion surrounding the legitimate ENA token launch.

#PeckShieldAlert $ENA (Ethena Labs) on #BNBChain has been exploited, resulting in a loss of 480 $BNB (worth ~$290K)

*Note*: The token shares the same name as the legitimate ones

— PeckShieldAlert (@PeckShieldAlert) March 29, 2024

The fake token’s exploitation, separate from Ethena Labs’ initiative, casts a shadow on the cryptocurrency community, emphasizing the importance of robust security measures and thorough due diligence in token transactions and investments.

There are fears that while the real token was not the victim this time round, it could be targeted ahead of the highly anticipated airdrop.

The highly anticipated ENA token airdrop

Ethena Labs protocol, known for its $1.3 billion USDe token, yesterday announced the upcoming distribution of 750 million ENA governance tokens, representing 5% of the total supply.

According to the provided instructions, to participate in the airdrop, users are required to hold Ethena Labs’ USDe token, a stablecoin pegged to the US dollar.

The distribution of ENA tokens is scheduled to commence on April 2, with trading expected to begin on centralized exchanges shortly thereafter.

The decision to airdrop ENA tokens to USDe holders demonstrates Ethena Labs’ commitment to engaging its community and incentivizing participation within its decentralized finance (DeFi) ecosystem.

With notable institutional backing and a track record of success, Ethena aims to foster greater adoption and growth in the DeFi space.

The post Hackers exploit token mimicking ENA after Ethena Labs announced a 750M ENA airdrop appeared first on Invezz

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