Shortly after the launch of Ethena (ENA) on Binance Launchpool, a counterfeit ENA token has been exploited, resulting in the loss of 480 BNB valued at $290,000.
As reported by blockchain security firm PeckShield on Friday, the exploited token is a fraudulent replication of ENA.
The announcement on X emphasized that the fake token shares the same name as the legitimate one.
#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
Binance, renowned as the world’s leading cryptocurrency exchange by market capitalization, incorporated Ethena into its Launchpool, marking it as the 50th project to join the platform. The launch facilitates users to farm the token by staking BNB or FDUSD, as stated in the Friday announcement.
Introducing @ethena_labs $ENA on #Binance Launchpool!
Farm $ENA by staking #BNB and $FDUSD.
➡️ https://t.co/1VIrENbi2v pic.twitter.com/ZHiJ5eYCwc
— Binance (@binance) March 29, 2024
The exploitation of the fake Ethena token, distinct from Ethena Labs’ initiative, underscores the importance of robust security measures and due diligence in token transactions.
The news of the exploit has caused confusion within the cryptocurrency community on X. PeckShield issued a separate confirmation that the token is fraudulent and has no association with legitimate Ethena.
Clarification: The token mentioned below is not authentic and should not be linked to Ethena in any way. https://t.co/qxxKJfIe6n
— PeckShieldAlert (@PeckShieldAlert) March 29, 2024
In a clarifying statement, PeckShield highlighted that the mentioned token is inauthentic and should not be linked to Ethena in any manner.
This incident coincides with heightened anticipation within the community for the upcoming token airdrop announced by the company, scheduled for April 2. The airdrop represents the next phase of expansion following the success of its USDe synthetic stablecoin.
The protocol intends to distribute 750 million ENA tokens, equivalent to 5% of its total supply, during the airdrop. Eligible participants can expect to receive their share on April 2, and the tokens will subsequently be available on centralized cryptocurrency exchanges (CEXs).
The allocation of each user’s drop is determined by the accumulation of “shards” until April 1, with shards serving as digital units measuring user engagement with the protocol.
According to DeFiLlama data, Ethena’s USDe has surpassed a supply of over $1.38 billion, representing a significant milestone.
