Monday, December 5, 2022
HomeDeFiScam alert: BNB chain faces $100 million exploit

Scam alert: BNB chain faces $100 million exploit

On October 7, Binance CEO via tweet announced the BNB chain has been faced with an exploit for $100 million. The BNB chain is made of BNB Beacon Chain and BNB Smart Chain.

The operation on the network restarted on October 7, after the exploit that caused the network to halt.

$100 million exploit

Cyberattackers attempted to steal $570 million of numerous digital currencies. However, validators reacted quickly to stop the chain, leaving $429 million on the BNB Chain.

The most recent nine-figure cryptocurrency breach occurred on the BNB Chain. After a cross-chain attack report confirmed, activity on the BNB chain was suspended on October 6.

The network’s cross-chain bridge, the BSC Token Hub, became the source of exploitation. A malware allowed the hacker to steal 2 million BNB tokens, (equals to $560 million), from the system.

The severe malware allowed the cyber attackers to fabricate security steps and produce extra BNB tokens, which they then delivered to a controlled address.

The BNB Chain support staff assured customers that “all monies are safe,” as the BNB tokens were not taken from wallets but rather newly minted by the attacker.

The team commended the work of the Binance community and complemented node service providers for their “quick and prompt steps.”

In January 2022, Vitalik Buterin, the co-founder of Ethereum, issued a warning against the drawbacks of cross-chain bridges, pointing out the security dangers associated with such ecosystems.

The attackers succeeded in stealing $100 million out of the approximately $560 million that was at risk. This is due to the coordinated shutdown yesterday night, which prevented the majority of the stolen tokens (about $429 million) from being removed from the BNB chain.

Before it could be moved to another address, $7 million was frozen, with stablecoin issuer Tether alone locking almost 6.5 million of its USDT tokens.

The BNB Chain attack follows a significant hack two weeks ago on Wintermute, the top cryptocurrency market maker. Wintermute suffered a loss of $160 million via its decentralised financing (DeFi) activities.

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