The crypto market has just witnessed another hack. This time, the BNB Chain was exploited by hackers. As revealedon Twitter by the CEO of Binance Changpeng Zhao (CZ), a cross-chain bridge and the BSC Token Hub were exploited.
The BSC Token Hub is used to facilitate cross-chain transactions between BNB Beacon Chain and Binance Smart Chain. As such, the exploit resulted in the loss of extra Binance Coins (BNB). However, all validators on the network have been asked to suspend the Binance smart chain.
Although users remain worried about their funds, CZ maintained that all funds were safe and that the public will be updated with more details going forward. Hewrote: “An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC. The issue is contained now. Your funds are safe. We apologize for the inconvenience and will provide further updates accordingly.”
Additionally, Binance confirmed on Reddit that around $100 million to $110 million worth of funds had initially been moved from the BNB Chain. However, after alarming feedback from security officials and community members, Binance confirmed that funds worth $7 million have been frozen.
Cross-chain bridges have been the common point of attack for hackers. These are basically platforms that allow transferring tokens across blockchains. Interestingly, the Binance chief has said that they would be compensating for all the funds lost. “In all likelihood, Binance will cover any fund that the hackers get away with,” he added.
The case of Binance Chain is the latest among several bridge-exploits taking place this year.
Following the news of the exploit, the price of BNB Coin came under immediate selling pressure. As a result, the BNB Coin has lost almost all of its last week’s gains. The data from blockchain security and analytics firm PeckShield shows: BNBchain exploiter has bridged ~$89.5M to other Chains (non-BSC chains), ~58% out to Ethereum and ~33% out to Fantom, ~4.5% out to Arbitrum.
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