BNB Chain temporarily paused network after $100M cross-chain Bridge exploit!

by | Oct 11, 2022 | Alt Coin, BNB, Market News, Project Spotlight | 0 comments

The news about a critical exploit on the BNB Chain was announced by the Binance team with all withdrawals and deposits suspended on the network. It was 6th Oct when the Binance blockchain paused temporarily due to a cross chain bridge exploit.

The official announcement of the temporary pause was made through the twitter account of Binance. Binance gave an update that the blockchain was “under maintenance” suspending all withdrawals & deposits.

The exploit was seen as connected with a cross-chain bridge on BSC Token Hub. A deep insight to the matter has uncovered that 2 million BNB worth roughly $566 million has been taken. Out of that, around $7 million worth has previously been frozen, yet the attacker is trying to bridge the assets from BSC onto the Ethereum, Fantom, and Arbitrum blockchains.

That such a little amount of assets were stolen highlighted the potential gain of BNB’s gamble to pause the chain instead of risking more resources getting away. Blockchains are purportedly decentralized intended to work beyond the impulse of solitary entities: you shouldn’t simply flip an off switch.

Venus Protocol Reaction:

Venture protocol reacted in a tweet regarding the whole exploitation matter. They stated that:
 “Venus Protocol experienced NO EXPLOIT and funds are SAFE! The possible BNB threat actor has used the Venus platform to open an over collateralized position of app. $254M and borrow app. $147.5M against 900K BNB Tokens deposited.”
 
 They also stated that:
 
 “There are 2 options next:

*The borrower refunds hir/her loans, liquidity returns to the protocol immediately and APY drops back to normal.

*He/She doesn’t refund and disappear with the borrowed stablecoins = the account will accumulate interest and slowly get liquidated.”

Crypto Community Reaction on Exploit: 

A lot of people were shocked on this exploit and was questioning the security of BNB blockchain. While on the other side, many were seeing it as a misfortune event as many hacking were incidents taking place in the recent days and they were saying that it’s just the hacker’s luck to break into the BNB chain.

In all this chaos, several node providers played essential part in handling the chance of a more regrettable exploit. Tether likewise added to avoiding additional misfortunes by blacklisting the exploiter’s address.

At long last, in the early hours of 7th October, BNB chain stated that it was making progress toward restoring the chain within an hour and as per the updates, the restoring of the chain will guarantee that the hacker has no access to the chain.