Binance Smart Chain Was Momentarily Halted Following $560 Million Hack – CoinCheckup Blog


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Key takeaways:

  • BNB Chain’s token bridge was hacked for $560 million worth of BNB
  • Binance Smart Chain was temporarily halted and a series of hotfixes implemented following the attack
  • Hackers were able to take off with $100M – $110M worth of digital assets

Attackers exploited a vulnerability in BSC Token Hub

On Thursday, a blockchain bridge connecting BNB Smart Chain and BNB Beacon Chain was exploited for 2 million BNB (roughly $560 million at current market rates) worth of digital assets. 

According to a blog post shared by the BNB Chain team earlier today, an attacker, or a group of attackers, found an exploit in the cross-chain bridge called BSC Token Hub. Binance CEO Changpeng “CZ” Zhao first informed the broader community about the unfortunate event via a Twitter post earlier in the day.

Out of the total amount of funds stolen, between $100 million and $110 million was taken off chain, while the remaining hacked funds are still on BSC, awaiting a governance vote that will decide whether they will be frozen or not.

Following a shutdown and a series of quick updates approved by BSC validators, BNB Chain was back online earlier today at around 6:30 AM UTC. 

BSC validators restarted the blockchain with several hotfixes

As a response to the largest hack in BSC’s history, a software update was quickly pushed to fix the code that allowed attackers to take out the multi-million dollar attack. In our limited technical knowledge, it is worth noting that the update doesn’t seem to address the root issue but rather aims to prevent a similar thing from happening until a more comprehensive solution is implemented.

According to a post made by the BNB Chain team, the most recent software release includes a fix that prevents hacker accounts from acting. In addition, the cross-chain communication between BNB Beacon Chain and BSC has been disabled.

It is worth noting that In the coming days, the BSC community will vote on a series of proposals, including how to reimburse hacked funds, whether to implement a $1 million bounty for those that find bugs in the future, and how big of a bounty to put on hackers (up to 10% of recovered funds, per the team).


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