Cubiswap Finance puzzles users with $425k withdrawn via deployer address

Blockchain security firm PeckShield says the funds are sent to Binance through a cross-chain bridge.

Developers behind Cubiswap Finance appeared to have withdrawn around 2,000 BNB (around $425,000) from the protocol, causing its native token CUBI to lose over 60% in value.

According to a blockchain security firm PeckShield, the Cubiswap protocol deployer (0x4b87…ffb5) first moved the funds a month ago, sending them to an unknown address (0x0477…8c4f). A few days ago, these funds were bridged from opBNB to BNB Chain (formerly Binance Smart Chain) and deposited into Binance.

Neither Binance nor Cubiswap Finance publicly commented on the matter as of press time. Shortly after the news broke, Cubiswap’s native token CUBI crashed 61.5% to $0.026, according to data from CoinGecko.

Cubiswap Finance is a liquidity provider based on opBNB, a layer-2 scaling solution for BNB Chain. The protocol was publicly supported by BNB Chain, incentivizing users to “participate in activities” from Cubiswap to earn prizes through “special airdrops.”

Bad actors appear to have turned to BNB Chain recently to hide malware and distribute malicious code among crypto users. Analysts at Guardio Labs earlier noted that hackers now hide malicious scripts in smart contracts, essentially serving as anonymous, free hosting platforms.