BNB Suffers Exploit, Entire Network Stands Still
The CEO of Binance, Changpeng Zhao, has confirmed the suspension of the BNB chain. The suspension occurred late on the 6th of October. According to him, the decision followed a $100 million exploit on the network.
Exploit Cost Might Be More
CZ equally stated that the stole assets are 25% of BNB’s latest burn. But there have been rumors on Twitter that the exploit cost more than $700 million. And a lot of other accounts claim the exploit was over the stated figures.
An independent researcher, CIA Officer, said there was a transaction worth $718 million. Further details from BscScan revealed there were large consecutive transactions on Binance. The said transactions involved a specific wallet.
As of press time, there were up to 1.02 million BNB tokens in the said address. Furthermore, the exploiter did not remove any BNB from the chain. Further probes showed that BUSD worth $28.8 million were also stolen.
PeckShield Incorporated, a security company, did what it could to alert the team at BNB. But the exploit was already completed before actions could be taken.
TheBlock’s Director of Research, Igor Igamberdiev, said the exploiter first registered a relayer. That way, it would aid the transfer of assets across blockchains. This would be possible even with a different consensus.
In addition, there were some surprises with regard to the details of the exploit. Iganberdiev noted that the exploiter passed the Merkle proof without any obstruction to the validation.
Concerted Efforts Prevented More Losses
According to reports, the Merkle root should have stopped a large transaction with old blocks. The obvious question now is what else happened on the network?
BNB did not waste time before responding following the incident. CoinMarketCap reported that the coin fell by 3.93% almost as soon as the news broke. But the volume of BNB did not decrease immediately.
Sentiment showed that the supply’s 40% increase in the last day was still available. On the other hand, however, the BNB coin received more public interest. Reports from LunarCrush said the token’s social engagement rose by 198.8%.
The increase is indicative of investors’ fear or concerns about the exploit’s severity. BNB assured investors that their funds are safe despite the exploit.
BNB also agreed that many node providers helped ensure the exploit didn’t get worse. Tether contributed to this by blacklisting the exploiter’s wallet. BNB noted that it was already working on restoring operations on the chain.
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