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FEG Token Migration, Trading Paused Due to Suspected Exploit; $FEG Plunges

by BSC News

February 24, 2023

chain

A flaw in the FEG Token Migration Tool leads to an exploit resulting in the extraction of FEGbcs liquidity.

Exploit Mars Smart DeFi Launch

A suspected hacker has crashed the coming out party for the FEG Token project’s Smart DeFi 2.0 upgrade. All migration and trading activity of $FEG on both Ethereum and BNB Chain was halted Thursday after developers noticed a massive extraction of liquidity on the token’s BNB side.

In the FEG Telegram group, developer BalGu apologized for the flaw in the Migration Tool and shared information from investigations into the incident in conjunction with PeckShield.

“The previous FEG LP pool from the exploit on FEGex was unbalanced,” BalGu said. “The exploiter added liquidity to the old FEG pair and received LP tokens, giving the exploiter 100x leverage to exploit the pair and get 100x more out of it.”
“As a side note we are not leaving the project and are looking for solutions.”

Comments in the Telegram group have been locked.

According to the latest message in the group, “The FEG Team has been working on potential strategies moving forward, researching the wallets involved in the exploit, and offering a 10% bounty & white-hat label for the return of the LP ... We will continue to explore options for recovery for the FEGbsc liquidity that are well thought out.”

Before trading was halted, CoinGecko showed an instantaneous drop of more than 50% in the price of $FEG on BNB and 24% on Ethereum.

This isn’t the first time FEG has been hit by hacks. In May 2022, the project endured two flash loan attacks that caused losses of nearly $2 million. The team eventually recovered 90% of the funds, causing $FEG to rebound starting in late October.

This newest exploit is a serious setback for FEG in a pivotal moment that has been in the workings for months, including a complete project rebrand.

What is FEG Token:

FEG Token is a decentralized transaction protocol on Ethereum and BNB Chain. FEG was created by FEGrox, the project’s pseudonymous lead developer. The native FEG token is a hyper-deflationary, community-driven governance token with a 2% transaction tax. FEG offers an entire ecosystem built with a focus on reshaping and evolving how decentralized finance works. It includes a FEG Exchange for swapping, staking, and providing liquidity to tokens, as well as fWraps, which enable users to wrap another cryptocurrency like ADA, DOGE, or XRP and receive rewards.

Where to find FEG:

Website | Twitter | Medium | Whitepaper | Instagram | Telegram | Reddit | Discord | Youtube |

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