The incident which occurred late Thursday had its cross-chain bridge linking with its BNB Chain targeted. This enabled the hackers to break into the BNB token off the network.
The creation of new blocks on BSC was put on hold, thereby suspending all transactions. The team of developers is however investigating the breach.
Announcing the incident, Binance CEO Changpeng Zhao, in a tweet on Thursday evening said,
“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.”
Binance Resumes Operations
The hackers were able to steal 2 million BNB tokens. This is about $570 million at current prices from the network. Using a sophisticated forging of low-level proof into one common library, they were able to get in.
It earlier estimated the total sum withdrawn in the range of $100 million to $110 million. The cryptocurrency company was however able to freeze $7 million of the funds with the help of its security partners.
Since the start of 2022, Binance has lost the sum of $1.4 billion to breaches on cross-chain bridges. This was revealed by the blockchain analytics firm, Chainalysis.
According to CoinMarketCap data, the value of BNB sank 3% more to $285. 36 per coin due to the hack. We hope they quickly recover from the loss.
Stringent actions need to be taken to avoid this from happening in the nearest future. Strong codes and security should also be built to make it difficult for hackers to penetrate the funds of millions.
If this is not taken into consideration, a lot of investors will deem the Binance platform not fit enough or worthy of their funds. This might however cause a huge loss for the crypto giant.
To those whose B.Ps are however high after hearing this news, relax! Your funds are safe and sound. Binance just suspended all activities to get to the bottom of things. They are back to business now.
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