Binance hacked! This article explains the $560M Binance Smart Chain Hack. The world’s biggest cryptocurrency exchange was compromised, according to the CEO of Binance. Another significant DeFi bridge hack has been found to target Binance’s Ethereum-compatible blockchain.
Hackers can hack into a bridge connecting blockchains, but the CEO of Binance claims that the matter is now “contained.” Hackers have taken 2 million Binance Coins (BNB), worth $566 million, from the Binance Bridge.
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Binance Hack: What is Binance Smart Chain Hack?
The Binance Hack appears to have started today at 2:30 PM EST when the attacker’s wallet received two transactions worth 1,000,000 BNB.
In an effort to turn the BNB into other assets, the hacker soon began dividing some of the funds among other liquidity pools.
Binance acknowledged the Binance Hack and suspended the BNB Smart Chain at 6:19 PM EST as they investigated.
After an exploit was used to send BNB to the attacker in the BSC Token Hub, the CEO of Binance announced at 7:51 PM EST that the Binance Smart Chain had been suspended.
Even while the majority of the stolen money is still on the BNB Smart Chain and hence no longer accessible to the hacker, Binance estimates that about $100m USD was moved off-chain.
Over $2 billion has reportedly been stolen through cryptocurrency attacks this year, many of which were carried out by groups with ties to North Korea, according to Bloomberg. Cross-chain bridges used to transfer coins across blockchains have been a frequent target.
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Cryptocurrencies have been significantly harmed by hacking incidents and a sell-off that reduced the value of digital assets by around $2 trillion.
Binance Smart Chain paused
The native coin of the Binance ecosystem was drained from the official bridge after more than $500 million in BNB, and Binance Smart Chain (BSC) was suspended.
Binance is the largest cryptocurrency exchange in the world, with $14.7 billion worth of trades made over the course of the last 24 hours. On BSC, deposits and withdrawals have been suspended. As a result, the $430M in BNB still on BSC will likely remain unreachable, leaving the hacker with just roughly $100M in assets on other chains.
The estimated value of Binance Hack was $100M. The attacker then deposited BNB into Venus, a lending system on BSC, and borrowed 150M in stablecoins.
As of 8 p.m. ET, there were $53 million in assets on Ethereum and around $49 million on Fantom. According to DeBank, the attacker later bridged portions of those assets to many other chains.
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Once the hack became known, BNB saw a 5% decline; however, it has since mostly recovered. The cost of a BNB is 285 USD as of this writing.
What is Binance?
Binance is the biggest cryptocurrency exchange in the world based on the daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands.
Binance was started by Changpeng Zhao, a developer who had previously created high-frequency trading software. Fusion Solutions, founded in 2005 by CEO Changpeng Zhao, created high-frequency trading platforms for stockbrokers. In 2013, he joined the Blockchain.info bitcoin wallet team as its third employee. He also worked for less than a year as the chief technology officer at OKCoin, a platform for spot trading between fiat money and digital assets.
Binance was founded in China and later moved its headquarters there due to the country’s tightening cryptocurrency regulations.
What is Binance Smart Chain?
Binance Smart Chain aims to lower transaction fees while providing a platform for the creation of DApps and other DeFi products.
The level of centralization of the Binance Smart Chain has drawn a lot of criticism and resulted in many network attacks.
What is BNB?
The company has produced two cryptocurrencies over the course of its existence: Binance Coin (BNB) and BinanceUSD (BUSD). BNB was introduced in July 2017. It started as an Ethereum token and made its debut as a Binance Smart Chain (BSC) token in September 2020. Later, the older Binance Chain and BSC were joined to create the BNB chain.
Proofs of authority and stake are combined in the “Proof of Staked Authority” technique employed by BNB Chain. 21 authorized validators are available. As of 2021, Binance Coin had the third-highest market capitalization among cryptocurrencies. Fees on Binance’s exchange can be paid with BNB by users.
BSC supports smart contracts and is compatible with the Ethereum virtual computer (EVM).
There have been numerous complaints about the degree of centralization of the Binance Smart Chain, which led to numerous network attacks.
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