LML/USDT staking protocol
Summary
The LML/USDT staking protocol was a yield-bearing staking contract deployed on Binance Smart Chain (BSC) that suffered a catastrophic price manipulation exploit on April 1, 2026, resulting in approximately $950,000 in losses. An attacker aggregated flash loans totaling 309,529,000 USDT, artificially inflated the LML token price by purchasing nearly the entire circulating supply and burning it, then claimed outsized staking rewards against the manipulated price. Stolen funds — converted to 450.6 ETH — were subsequently laundered through Tornado Cash, and no public team response or recovery effort has been documented.
Connected Entities
1 entitiesTimeline(5 events)
2026-04-01
BlockSec Phalcon monitoring system detects suspicious activity targeting the LML/USDT staking protocol on BSC.
2026-04-01
Attacker executes price manipulation attack in a single transaction using 309,529,000 USDT in aggregated flash loans; LML token supply largely burned to address(0); reward payout function called 11 times at manipulated price.
2026-04-01
LML token crashes 99.66% on PancakeSwap, from approximately $50 to $0.1758 USDT.
2026-04-01
Attacker converts approximately $950,370 in stolen USDT to 450.6 ETH and begins routing funds through Tornado Cash in batches of 0.1 to 100 ETH.
2026-04-01
Security firms BlockSec and PeckShield publish public disclosures of the exploit; estimated loss confirmed at approximately $950,000.
Decision Log
- hash: BVcBhbtzKVszaBTSBMWqBCK4LheiQV9UFfcRzkLjrQQi
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:12 AM
last updated: 5/29/2026, 3:54:26 PM
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