BNB network halts after $100 million mining "hacked"

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Binance CEO Changpeng Zhao (CZ) confirmed that the BNB chain will suspend trading at 11:51 p.m. UTC on October 6. According to the director of the crypto exchange, the decision is necessary. after mining $100 million in the network.

CZ has also added that the lost assets account for a quarter of the most recent BNB burn.

 

 

Interestingly, rumors were circulating on Twitter that this hack was worth more than $700 million. In fact, some accounts have been verified, and crypto researchers claim that the mining is much more than these numbers.

Event progression

According to the CIA officer, an independent investigative expert, a rare transaction worth $718 million took place on the Binance chain. The BscScan details show that several large transactions were made consecutively with a particular address involved. 

 

 

At the time of publication, the value of BNB at the aforementioned address is 1.02 million BNB. Furthermore, hackers only take BNB off-chain. Trading signs show that $28.8 million in BUSD was also stolen.

Source: BscScan

Security firm PeckShield Incorctures had to put a lot of effort into alerting the BNB team. However, it looks like the action was taken before any action was taken.

TheBlock's director of research, Igor Igamberdiev, noted that the miner registered a repeater for the BNB bridge prior to the event. In this case, it will help to transfer assets from one blockchain to another, even with a separate consensus mechanism. 

 

Also, there are some surprises based on the exploit details. Igamberdiev noted that the miner was able to pass the Merkle test without any hitch.

Reportedly, a large transaction involving an old block that Merkle root is said to have stopped. So what else has happened to BNB since the incident?

BNB moving up and down

BNB was quick to react after the event. According to CoinMarketCap, the coin suffered a 3.93% drop to $284.67. However, BNB volume did not drop immediately. Santiment revealed that the 40% gain over the past 24 hours remains intact.

Source: Emotions

On the other hand, interest in currencies is growing. LunarCrush reports that BNB's social interactions jumped 198.8% to 27.26 million just minutes after news of the BSC pause broke.

Source: LunarCrush

The implication of this increase suggests that BNB investors are scared or worried about the severity of mining. Despite the hack, BNB assures the community that the funds remain safe on-chain. 

Furthermore, he acknowledges that different node providers play an important role in addressing the possibility of a worse exploit. Tether also helps prevent further losses by blacklisting miners' addresses.

Finally, the BNB chain in the early hours of October 7 mentioned that they are working to restore the chain within an hour.

According to the update, reopening will ensure that the hacker doesn't have access to the chain. In addition, validators will help upgrade the node while the communication between the BNB Beacon Chain and Binance Smart Chain remains stopped.

 


Oct 07, 2022

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