BGM on BSC Batch Transactions Price Manipulation Exploit

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Generic BSC Chain

BGM is a token launched on BSC (Binance Smart Chain). This project has limited public presence. On November 10th, a complex attack was launched on the token which included price manipulation and large batch transactions. There was an estimated $450k lost. It's unclear what will be happening for affected users in this case.

About BGM

BGM is a smart contract on the Binance Smart Chain. Very limited information can be found about the history of this token.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

"The BGM token on BSC was attacked, resulting in losses exceeding $450K, with the attacker profiting through price manipulation."

Key Event Timeline - BGM on BSC Batch Transactions Price Manipulation Exploit

Date	Event	Description
November 6th, 2024 11:47:52 AM MST	Numerous Batch Transactions	The attacker creates numberous smart contracts as necessary for subsequent steps.
November 8th, 2024 10:04:15 PM MST	Smart Contract Addresses Setup	"the attacker designated four addresses as invitees, whose userInvitorEarn were inflated in subsequent txs. Address 0x851a was set as the first invitee, followed by each invitee pointing to the next."
November 8th, 2024 10:08:03 PM MST	Tokens Transfered/Inflated	"the above four invitee addresses's userInvitorEarn were inflated by leveraging the contracts created in the first step. These contracts acted as token users, transferring tokens to the invitees."
November 10th, 2024 1:04:24 AM MST	Increases To Token Price	"the attacker increased the token's price by calling BGM's withdraw function. This function transferred reward tokens from the pair, with the amount previously inflated through earlier txs."
November 10th, 2024 3:08:00 AM MST	TenArmorAlert Initial Tweet	TenArmorAlert notices and posts about the malicious transactions which have happened.
November 10th, 2024 9:43:00 AM MST	TenArmorAlert Tweet Posted	TenArmorAlert posts a follow up tweet with a detailed walkthrough of the attack.

Technical Details

"The token rewards invitees when tokens are transferred between EOAs. This mechanism can be exploited if multiple user have the same invitee address, which can artificially inflate userInvitorEarn[addr]."

"The reward can be withdrawn by calling the withdraw function, which directly transfer the reward tokens from the pair, functioning similarly to a burn mechanism that attacker exploited."

Total Amount Lost

The total amount lost has been estimated at $450,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

"Today's #BGM incident on #BSC @BNBCHAIN appears to be a well-planned attack. The attacker(0x7824) prepared this attack about three days in advance! The root cause lies in the reward mechanism for tokens inviters. Let's break it down"

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.