Binance Says $100 Million Stolen in Latest Crypto Hack
Binance estimates that about $100-110 million worth of its BNB cryptocurrency was taken by unknown hackers on Thursday, according to a tweet from CEO Changpeng Zhao, significantly less than the $566 million. originally estimated. But don’t worry if you have an account with Binance, your crypto is safe. The hacker or hackers seem to have managed to convince the blockchain network to just produce more BNB out of thin air instead of stealing someone’s particular crypto.
The exploit that the hackers grabbed was apparently the link between the BNB Beacon Chain, which uses the older one BEP2 technical standardand BNB Chain, which uses the newer one BEP20 or BSC standard, according to Zhao. About $7 million of BNB created by the hackers has already been frozen, reports Zhao.
“An exploit on a cross-chain bridge, BSC Token Hub, resulted in additional BNB. We have asked all validators to temporarily suspend BSC. The issue is now contained. Your money is safe. We apologize for the inconvenience and will provide further updates accordingly,” tweeted Zhao late Thursday.
Binance Smart Chain suspended transactions around 6:20 PM ET on Thursday, and a fix for the issue was pushed out through Github around 1 a.m. on Friday.
In an update shortly before 03:00, BNB Chain tweeted that“The validators confirm their status and the community infrastructure is also upgraded.”
Hackers often target the bridges between blockchains, a weak point that has produced plenty of prey for thieves in recent months. About $190 million in crypto was stolen in a similar hack of the Nomad network back August. The Wormhole bridge was also hacked for around $325 million February.
Bridges allow blockchains of different cryptocurrencies to communicate with each other and trade, without the need for an intermediary. In Thursday’s hack, the BNB Beacon Chain uses proof-of-work and has limited capabilities, while the BNB chain uses proof-of-stake and can communicate with the Ethereum network more easily.
BNB, the third most popular crypto, traded down about 3% Friday morning to $285. Bitcoin, the most popular cryptocurrency in the world, also traded down around $19,959. Ethereum, the second most popular, eased slightly to $1,355.
