Binance CEO Changpeng Zhao (CZ) confirmed that the BNB chain suspended transactions at 23:51 UTC on October 6. According to the head of the cryptocurrency exchange, the decision was necessary after a $100 million exploit within the network.
CZ also added that the lost assets represented a quarter of the recent BNB burn.
Exploitation on a cross-chain bridge, the BSC Token Hub, boosted BNB. We have asked all auditors to temporarily close BSC. The question now exists. Your money is safe. We apologize for the inconvenience and will provide more updates accordingly.
– CZ 🔶 Binance (cz_binance) October 6 2022
Due to erratic activity, we are pausing BSC. We apologize for the inconvenience and will provide more updates here.
Thanks for your patience and understanding.
– BNB Chain (BNBCHAIN) October 6 2022
Interestingly, rumors spread across Twitter that the hack exceeded $700 million. In fact, many verified accounts and crypto researchers believed the exploit was more than these numbers.
Maybe a done deal
According to a CIA official who specializes in independent research, a rare $718 million deal occurred on the Binance Chain. details BA Show that some large transaction occurred in a row and involved a specific address.
Researchers have discovered an unusual $718 million deal on the BSC network, the meaning of which is unclear at the moment, but many are already talking about a possible hack 🤷♂️https://t.co/GWInEBySM5
– CIA officer (@officer_cia) October 6 2022
At the time of writing, the BNB value of the aforementioned address is 1.02 million BNB. Also, the hacker only took BNB from the chain. Indications from transactions showed that 28.8 million dollars in BUSD was too stolen.
security company, Picshield The establishment did its best to warn the BNB team. However, it appears that the deed was already done before any action was taken.
TheBlock’s head of research, Igor Igamperdiev, noted that the developer had registered a BNB bridge relay ahead of the event. In this case, moving assets from one blockchain to another would have helped, even with a separate consensus mechanism.
Before the hack, a BNB bridge exploiter registered as a relay for this bridge pic.twitter.com/IDC15hRJAA
– Igor Ighamberdiev (@FrankResearcher) October 6 2022
Also, there were some surprises as per the details of the loophole. Igamberdiev noted that the developer was able to pass Merkle validation without any hindrance.
Reportedly, a big deal included an old block that was supposed to stop Merkel’s root. So, what else has happened to BNB since the incident?
Rise and fall and help
BNB did not take long to respond after the incident. according to CoinMarketCapThe coin experienced a drop of 3.93% to $284.67. But the volume of BNB did not drop immediately. feelings Show that the 40% increase over the past 24 hours is still intact.
However, there has been a growing interest in the exchange currency. LunarCrush It reported that BNB’s social engagement increased by 198.8% to 27.26 million minutes after news of the BSC suspension spread.
The significance of this increase showed that BNB investors were either afraid or worried about the risk of exploitation. Despite the hack, BNB reassured the community that the money is safe on the chain.
It also acknowledged that many node providers played critical roles in managing the potential for a worse exploit. Tether also helped avoid further losses with Black list Developer address.
Finally, as early as October 7, BNB Chain reported that it was working on getting the chain back within an hour.
According to the update, reopening will ensure that the hacker cannot gain access to the chain. The validators will also help in upgrading the contract while the connection between the BNB Beacon Chain and the Binance Smart Chain remains idle.
Update – BSC validators coordinate to return BNB Smart Chain (BSC) in 1 hour with latest version https://t.co/d2gIsRlGDC
1. Prevent hacker accounts from acting
– BNB Chain (BNBCHAIN) October 7, 2022