Hackers have stolen $570 million from a blockchain linked with Binance. The largest crypto exchange has had to temporarily halt the operation of its Binance Smart Chain after the exploit. Since the hack, Binance Coin's (BNB) price has also dropped noticeably, with the token down 3.5% in the last 24 hours. At the time of writing, it is trading at $281.
Key Takeaways
- The BSC Token Hub, a cross-chain bridge, was exploited on October 6, with hackers draining $570 million.
- Binance halted the Binance Smart Chain and managed to freeze $7 million in funds after pushing an update that froze the accounts.
- The price of the BNB token took a hit, going down by 3.5% over the past 24 hours.
Attack on Cross-Chain Bridge
According to Binance's BNB Chain blog, hackers drained 2 million BNB tokens from the network on October 6, which is about $570 million at current prices.Binance co-founder and CEO Changpeng Zhao said that the exploit was on a cross-chain bridge, BSC Token Hub, which resulted in extra BNB tokens being created out of thin air. A cross-chain bridge lets users port their digital assets from one blockchain to another. The BSC Token Hub is a bridge between the BNB Beacon Chain (BEP2) and the BNB Chain (BEP20 or BSC). The exchange asked validators to temporarily suspend the network, and Zhao confirmed that users’ funds were safe.
Binance Resumes Operations of BSC
Binance has resumed operations of the BSC chain after releasing a software update that froze the hackers’ accounts. Operations restarted at around 06:40 UTC. Following the resolution, Zhao praised the BNB team, saying that they handled the issue quickly and with transparency and responsibility. The team also posted an update on the matter, saying that a new on-chain governance mechanism would be introduced on the BNB chain to combat future attacks.
There will also be governance votes to determine whether to freeze the hacked funds and whether to use BNB Auto-Burn to cover the remaining hacked funds. A governance vote will also decide whether a white hat program that will reward the discovery of bugs to the tune of $1 million should be implemented, as well as a bounty for chatting hackers, up to 10% of the recovered funds.
The Bottom Line
Hackers have been exploiting the crypto industry for years. Blockchain analysis firm Chainalysis published a report in August, saying that the crypto market had lost $2 billion across 13 separate cross-chain bridge hacks in 2022.
The largest cryptocurrency hack to date was conducted in March 2022 and targeted the network that supports the popularAxie Infinityblockchain gaming platform.One recent attack was on the Nomad Bridge, which saw nearly $200 million stolen, with another prominent one being the Wormhole exploit, which saw over $325 million stolen.Blockchain projects promise security, but back-to-back attacks shatter this myth and investors' confidence.
FAQs
The BSC Token Hub, a cross-chain bridge, was exploited on October 6, with hackers draining $570 million. Binance halted the Binance Smart Chain and managed to freeze $7 million in funds after pushing an update that froze the accounts. The price of the BNB token took a hit, going down by 3.5% over the past 24 hours.
What happened in the Binance hack? ›
In response to a cyberattack on October 4, 2022, which resulted in the theft of about two million BNB (Binance Coin) tokens, exchangeable for over $570 million in fiat currency. The BSC Token Hub cross-chain bridge, which connects the BNB Beacon Chain/BEP2 and BNBChain/BEP20 chains, was exploited by the hacker.
What is the world's largest crypto exchange hacked with possible losses of $500m? ›
Binance, the world's largest cryptocurrency exchange, may have lost half a billion dollars after a hack of its network.
Is Binance bridge safe? ›
Binance Bridge 2.0 is a trustable bridge as it is protected by the highest security standards of Binance, operating on BNB Smart Chain with very low fees and fast transactions.
What is Binance Smart Chain Bridge? ›
Cross-chain bridges like the Binance bridge are one of the most used interoperability solutions, which enable the transfer of assets and information between two blockchains by acting as a bridge. BNB Chain (formerly known as Binance Smart Chain), is a native blockchain developed by crypto exchange Binance.
What is the biggest crypto hack in history? ›
What Is the Biggest Bitcoin Hack In History? Only counting bitcoins, Mt. Gox is likely the largest bitcoin hack, with more than 650,000 bitcoins stolen.
Can my money be stolen from Binance? ›
Yes, it is possible to get scammed on Binance or any other exchange if users fall victim to phishing attempts, unauthorized access to accounts, or fraudulent investment schemes.
What is the most beaten cryptocurrency? ›
30 Symbols
- BTC-USD55,901.162,162.19% Bitcoin USD.
- ETH-USD2,332.6285.93% Ethereum USD.
- USDT-USD1.00-0.00% Tether USDt USD.
- BNB-USD510.0618.46% BNB USD.
- SOL-USD130.533.62% Solana USD.
- USDC-USD1.00-0.00% USD Coin USD.
- XRP-USD0.530.01% XRP USD.
- DOGE-USD0.100.01% Dogecoin USD.
BACK IN THE MARKET
Currently, around $30 billion to $35 billion worth of crypto is locked up in cryptocurrency bankruptcies, with around 15 million people affected, according to Xclaim. There was about $16 billion in crypto stuck in FTX when it collapsed, according to Xclaim.
Which cryptocurrency crashed the most? ›
The Biggest Crypto Crashes in History
| Cryptocurrency | Date | Ending Price |
|---|
| $LUNA | May 2022 | $0.0001 |
| Bitcoin | February 2014 | $360 |
| $BCC | January 2018 | $8 |
| FTT (FTX token) | November 2022 | $0.87 |
2 more rowsJun 14, 2023
The Binance Bridge 2.0 is now live on the platform and will initially support a batch of nine tokens reportedly The Sandbox, Apecoin, JasmyCoin, Decentraland, VeChain, ConstitutionDAO, MovieBloc, LooksRare, and DogeLon Mars. Regardless, Binance has still given us some insight into how the bridging process works.
How safe is Binance now? ›
Binance is generally considered a safe platform for investing in Bitcoin and other cryptocurrencies. They have robust security measures in place to protect users' funds.
Is my money safe in Binance? ›
Is Binance Exchange Safe? Binance is often considered one of the safest exchanges in the world if you consider the level of security. If the exchange crashed or a hacker stole assets or funds, the SAFU reimburses its users from the $1 billion fund. Not every platform has an insurance fund in place.
What is Binance Smart Chain called now? ›
The Binance Smart Chain (BSC) is now the BNB Chain. BSC, crypto exchange Binance's layer-1 blockchain, recently announced the merger of the Binance Smart Chain and the Binance Chain to form the BNB Chain.
Does Binance have a bridge? ›
Using the Binance Bridge service, you can convert cryptoassets between the native blockchain and Binance Chain/Binance Smart Chain. For example, if you transfer USDT from Ethereum to Binance Smart Chain, Binance Bridge will support the cross-chain conversion of Ethereum ERC-20 to Binance BEP-2 or BEP-20.
Is Binance Smart Chain safe? ›
Investing in Binance Smart Chain (BSC) carries several risks that investors should be aware of. These risks include smart contract vulnerabilities, regulatory uncertainty, market volatility, potential hacking or security breaches, and the risk of project failure.
What was Binance accused of? ›
Cryptocurrency exchange giant Binance faces federal charges for fraud and money laundering.
What happens if Binance goes bust? ›
If a crypto exchange declares bankruptcy, accounts will likely be frozen for a time. If you have crypto or funds at an exchange that declares bankruptcy, you'll need to file a claim and wait for the process to complete. Claims filed at a bankrupt exchange are paid out in order of creditor priority.
Why did Binance get banned? ›
Binance was banned in response to its non-compliance with anti-money laundering laws in the country.
How did crypto exchange get hacked? ›
Because exchanges usually hold huge stores of cryptocurrency, they are major targets for crypto exchange hacks. Hackers deploy different types of attacks—such as phishing and social engineering—to steal coins that are stored in the exchange's hot wallets.
