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Binance-Linked Blockchain Hit by $570 Million Crypto Hack 

An Ethereum blockchain associated with Binance has been hacked, and $570 million has been stolen. Immediately following the exploit, Binance Smart Chain was temporarily halted.

BC Games

During the last 24 hours, Binance Coin’s price dropped 3.5% after the breach. Currently, it sells for $280.

Using a cross-chain bridge called the BSC Token Hub, hackers stole $570 million on October 6. After deploying a software update that froze the accounts, Binance secured $7 million in cash.  There has been a 3.5% decline in the price of BNB over the last 24 hours.

How did the hack happen?

Binance’s BNB Chain blog reported on October 6 that hackers stole 2 million BNB tokens worth $570 million. According to Changpeng Zhao, CEO of Binance, the attacker targeted BSC Token Hub, a cross-chain bridge that created additional BNB tokens without permission. 

Digital assets can be transferred between blockchains with the help of cross-chain bridges. So even though the exchange ordered the network to be shut down for a moment, Zhao reassured users their money was safe.

The BSC chain has been restored after Binance made a software upgrade that temporarily blocked hackers’ access. Zhao praised the BNB team’s swift, open, and responsible handling of the situation. The team announced in a subsequent update that a new on-chain governance mechanism would be implemented to prevent future attacks.

The governance vote will determine whether BNB Auto-Burn should cover the remaining stolen funds and whether they should be frozen. Governance votes will also determine if a white hat scheme will be set up, rewarding hackers with $1 million for flaw finding and up to 10% for talking to hackers.