Poolz Finance, a cross-chain crowdfunding launchpad for Web3 projects, has been exploited for US$390,000 worth of digital assets on the Binance Smart Chain and Polygon blockchains, according to an alert by blockchain security firm PeckShield on Wednesday.

The exploit occurred due to a “classic arithmetic overflow issue, which is exploited to drain funds from the contract,” according to PeckShield’s Twitter post.

PeckShield first spotted the exploit by observing a repetitive transaction pattern by the same sender in the token vesting smart contract.

Poolz Finance said they will create a new smart contract, restore the US$200,000 worth of liquidity on PancakeSwap from the company treasury and has warned users not to trade the Poolz token.

(By ZOLTAN VARDAI)