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News

BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker’s Address

October 8, 2022 - Around 2 mins mins to read
The BNB Chain has been restarted after being shut down for many hours to investigate a massive bridge exploit.
BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address
BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address 4

An unknown hacker stole about $560 million in BNB from the network’s cross-chain bridge, known as the BSC Token Hub, on Thursday. According to security firm SlowMist, the hacker shifted more than $100 million to other chains out of this total.

On BNB Chain, the perpetrator’s address owned about $430 million in BNB tokens.

The hacker used a security flaw to create security proofs that allowed him to extract the bridge’s locked cash. All withdrawal requests on the bridge required these documents.

In reaction to the vulnerability, the team shut down the blockchain, instructing all 44 validators (including 26 active validators) to cease activities. This was done to prevent the hacker from making any further changes and to reclaim control of monies that remained on the BNB Chain. The team stated:

“Decentralized chains are not designed to be stopped, but by contacting community validators one by one, we were able to stop the incident from spreading. It was not that easy as BNB Smart Chain has 26 active validators at present and 44 in total in different time zones. This delayed closure, but we were able to minimize the loss.”

BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address
BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address 5

While the BNB Chain has already prevented cash from being transferred from the hacker’s wallet, the project will have a governance vote to formalize the decision and make a final decision on what to do with those monies.

BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address
Source: BNB Chain

Furthermore, the BNB Chain governance will vote on publishing a bounty for finding hackers, with a payout of 10% of recovered assets. Finally, it revealed plans for a white hat bug bounty scheme, which would pay up to $1 million for each security flaw discovered on the BNB network, including the compromised bridge.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker’s Address

The BNB Chain has been restarted after being shut down for many hours to investigate a massive bridge exploit.
BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address
BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address 9

An unknown hacker stole about $560 million in BNB from the network’s cross-chain bridge, known as the BSC Token Hub, on Thursday. According to security firm SlowMist, the hacker shifted more than $100 million to other chains out of this total.

On BNB Chain, the perpetrator’s address owned about $430 million in BNB tokens.

The hacker used a security flaw to create security proofs that allowed him to extract the bridge’s locked cash. All withdrawal requests on the bridge required these documents.

In reaction to the vulnerability, the team shut down the blockchain, instructing all 44 validators (including 26 active validators) to cease activities. This was done to prevent the hacker from making any further changes and to reclaim control of monies that remained on the BNB Chain. The team stated:

“Decentralized chains are not designed to be stopped, but by contacting community validators one by one, we were able to stop the incident from spreading. It was not that easy as BNB Smart Chain has 26 active validators at present and 44 in total in different time zones. This delayed closure, but we were able to minimize the loss.”

BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address
BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address 10

While the BNB Chain has already prevented cash from being transferred from the hacker’s wallet, the project will have a governance vote to formalize the decision and make a final decision on what to do with those monies.

BNB Chain Conducts Governance Votes To Decide To Freeze Funds In The Hacker's Address
Source: BNB Chain

Furthermore, the BNB Chain governance will vote on publishing a bounty for finding hackers, with a payout of 10% of recovered assets. Finally, it revealed plans for a white hat bug bounty scheme, which would pay up to $1 million for each security flaw discovered on the BNB network, including the compromised bridge.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

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