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.
During the last 24 hours, Binance Coin’s price dropped 3.5% after the breach. Currently, it sells for $280.
Binance CEO Changpeng Zhao breaks down $570 million crypto hack /r/CryptoCurrency https://t.co/64YJLyrsjW pic.twitter.com/j6Jt5WZwat
— CryptoNewsDaily (@CryptoNDaily) October 7, 2022
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.
Binance had a massive hack, 2 million BNB vanished estimated value of 570 mill. The hackers exploited a cross-chain bridge connector.
— Jason (@Jstergram) October 7, 2022
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.