A $14.35 million USDT drain from the PancakeSwap pool for 79AU, 79thVault's token, occurred on October 7 despite 79% of the pool's liquidity-provider receipts being burned, according to blockchain analysis firm Bitquery.
The drain occurred through two selling wallets and was documented in a Bitquery investigation published October 8. Despite the burned LP receipts, a permission embedded in the 79AU token allowed tokens to leave the pool without payment and be sold back for USDT, effectively bypassing the need to redeem a liquidity receipt.
How Burned LP Receipts Failed to Prevent the Drain
Liquidity-provider receipts typically represent a provider's share of a pool on PancakeSwap. Burning these receipts by sending them to an inaccessible address normally prevents their redemption. However, this action does not disable swaps or revoke privileged token permissions.
According to PancakeSwap's V2 documentation, ordinary redemption requires a provider to select a share to remove and receive both paired tokens. Burning LP receipts prevents this process but does not rewrite the underlying token contracts' balance rules or revoke a privileged address's token permissions.
Remaining Exposure
At 12:53 UTC on October 8, Bitquery identified two pull-authorized addresses: the deployer and a newly authorized wallet. Read-only simulations showed either address could remove approximately 95% of the pool's remaining 79AU tokens, though the simulations moved no funds.
The snapshot also showed one wallet holding the unburned 21% of LP receipts with ordinary redemption rights over that share. Confirming whether 79AU's reported exposure has ended would require a fresh check of that transfer permission.
