A hacker behind a Binance exploit made a fatal transaction error while attempting to liquidate stolen assets on a decentralized exchange. The perpetrator offloaded 908,793 Prom (PROM) tokens with an estimated market value of around $5 million, or approximately IDR 78.5 billion. However, the sell order yielded nowhere near millions of dollars, returning just 0.0316 ETH worth $71, or about IDR 1.1 million.
On-chain tracking platform Lookonchain reported the findings after detecting outflows from the wallet holding the stolen funds. Instead of securing substantial profits from the exploit, the paper value worth tens of billions of rupiah vanished almost instantly on the blockchain due to the perpetrator’s own oversight.
Why a $5 Million Liquidation Ended Up at $71
The primary reason for the abysmal return lies in the liquidity pool chosen by the exploiter. The hacker executed an order dumping all 908,793 PROM directly into a Uniswap V2 liquidity pool. That pool was virtually empty, lacking sufficient liquidity to absorb such a massive sell order.
In decentralized exchange trading, large-volume transactions routed into illiquid pools automatically trigger extreme slippage. Because Uniswap V2 lacked sufficient counterpart token balances to absorb hundreds of thousands of dumped PROM, the execution price plunged to rock bottom. Slippage on the transaction was recorded at nearly 100%, effectively erasing almost all economic value during the swap.
Once the transaction was confirmed by the network, the hacker received a mere 0.0316 ETH. Based on prevailing exchange rates at the time, that Ethereum balance was worth around $71, or approximately IDR 1.1 million. The gap between the $5 million estimated market value and the $71 realized payout makes this one of the most glaring on-chain execution blunders.
Time Pressure Ahead of Address Blacklisting
The reckless move unfolded as the hacker rushed to convert the stolen altcoins. In crypto heist scenarios, time is often of the essence. The hacker attempted to swap the PROM tokens as quickly as possible before the project’s smart contract or the receiving wallet address could be blacklisted and frozen by authorities.
On-chain blacklisting is a swift countermeasure frequently taken by asset issuers and law enforcement agencies to freeze illicit funds from cybercrimes. Once a holding address is blacklisted, the assets within can no longer be transferred or swapped. The urgency to frontrun a potential freeze drove the hacker to dump the tokens without checking the liquidity depth on the destination platform.
PROM Token Market Conditions
Prior to the token dump, PROM had actually shown strength in the crypto market. CoinGecko data showed PROM rising as much as 13% to reach $5.80 per token before the hacker’s liquidation mishap occurred.
However, the sudden release of 908,793 tokens into the liquidity pool immediately weighed on PROM’s market price. For market participants and asset holders, the incident highlights a stark risk of decentralized exchanges: without sufficient liquidity in a trading pool, large transactions can completely crush the exchange rate in a single trade.
The hacker compromised Binance and secured assets worth millions of dollars, yet panic-swapping on Uniswap V2 left them with a mere $71 in their wallet.
Reported by @lookonchain on X.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
