On October 7, Changpeng Zhao, CEO of the Binance exchange, went to Twitter and warned his followers about a hack on the BSC Token Hub. The hack on the cross-chain protocol resulted in the minting of additional BNB currencies.
On-chain analytics estimated that the attackers stole almost two million BNB tokens, the chain’s native coin. According to multiple media reports, the total value of the stolen BNB tokes is estimated to be about $600 million.
Verification Of The Hack
A subsequent post on Reddit by a BNB Chain developer confirmed the hacking incident. The hack, carried out on the BSC Token Hub, resulted in the generation of “excess BNB,” according to BNB Chain.
However, Binance assured the public that its systems are secure and users’ assets are protected while it investigates the problem. The Binance team only stopped network operations here, but the team is currently investigating to determine the fundamental flaw that triggered the exploit.
Earlier in the week, there was a hack on TransitSwap, a decentralized crypto exchange (DEX), owing to a flaw in its smart contract. The hack resulted in the DEX losing around $23 million in crypto assets.
Also read:Later, efforts by cryptocurrency security platforms SlowMist, Peckshield, TokenPocket, and Bitrate assisted the TransitSwap team in recovering the stolen crypto assets. As a result, the hacker was compelled to repay 70% of the stolen assets through Transit Swap.
According to Binance CEO Changpeng Zhao, the cryptocurrency exchange is close to finding out the identity of the people responsible for the BSC Token Hub hack.
Binance Collaborates With Authorities’ Investigation
The CEO of Binance told a business news channel that law enforcement is supporting Binance’s investigation. He said, “Currently, we’re working with law enforcement worldwide and assisting authorities in identifying those responsible for the hack.”
He also said that “working together with the authorities can make the Binance space safe.” In addition, Zhao said, “Law enforcement offered some clues of who they believed the culprits would be at this exact moment.” Hence, “We’re close to narrowing down the culprits.”
Zhao requested that BSC be temporarily suspended during the event. In general, cryptocurrency crime is on the increase.
According to Chainalysis’ Mid-year Crypto Crime Update, hackers stole $1.9 billion in cryptocurrency in the first half of 2022. It is an increase from the $1.2 billion in tokens stolen over the same time last year.
However, crypto is still a growing sector, and with suitable safeguards in place, these hacking incidents will reduce in the future.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.