Locked liquidity did not stop this $14 million crypto pool drain
Bitquery traced 79AU’s drain to token permissions that bypassed burned LP receipts, with residual rights documented on Oct. 8. The post Locked liquidity did not stop this $14 million crypto pool drain appeared first on CryptoSlate.
The PancakeSwap pool for 79AU, 79thVault’s token, lost $14.35 million in USDT on Oct. 7 through two selling wallets, according to a Bitquery investigation published Oct. 8.
Bitquery found that 79% of the pool’s liquidity-provider receipts had been burned. But a permission inside 79AU let tokens leave the pool without payment. Those tokens were then sold back for USDT, bypassing the need to redeem a liquidity receipt.
Related ReadingPancakeSwap’s V2 documentation describes LP tokens as receipts representing a provider’s share of a pool. They are separate from the two assets traders exchange inside it.
The exchange’s liquidity guide describes ordinary redemption: a provider selects a share to remove and receives both paired tokens. Sending receipts to an inaccessible address prevents their redemption. It does not disable swaps, since trading exchanges the underlying assets without cashing in a liquidity position.