Ethena Labs reportedly suffers from security incident, analysts suspect $290k exploit

PeckShield analysts reported a security incident with the Ethena Labs project on March 29.

Experts say the vulnerability underlying the exploit is still unknown. According to PeckShield, it resulted in the loss of 480 BNB, equivalent to around $290,000 at the time of writing.

In a comment to the post, X users suggested that the incident was about creating a fake ENA token. The defi strategist, nicknamed Defi_Maestro, noted that PeckShield mentions the fake ENA token created on the BNB network.

At the same time, the Ethena Labs team did not comment on the incident with the token in the BNB network. In the latest mention of the Binance crypto exchange, the Ethena Labs team announced the project’s launch on Binance Launchpool.

In February 2024, Ethena Labs completed a $14 million strategic round and launched the delta-neutral stablecoin USDe. As a result, in early March, the Ethena protocol took first place in profitability among decentralized applications (dapps). It offered users 67.2% APR when staking in the USDe stablecoin.

However, part of the community expressed concern when the said stablecoin was launched on the market. The reason was the initial yield of USDe at 27.6% per annum. Users compared the asset with a similar indicator of the algorithmic stablecoin TerraUSD (UST). The company announced 20% per annum.