Dubai, UAE – June 2, 2024 – In a major blow to the cryptocurrency industry, a blockchain linked to Binance, the world’s largest crypto exchange, was hacked for a staggering $570 million. This incident marks the latest in a string of attacks targeting the crypto sector in 2024.
The hack targeted a “bridge” within the BNB Chain, formerly known as Binance Smart Chain, according to a tweet from Binance CEO Changpeng Zhao. Blockchain bridges allow users to transfer cryptocurrencies between different applications. Unfortunately, these bridges have become increasingly attractive targets for criminals, with research firm Chainalysis reporting over $2 billion stolen in bridge hacks this year alone.
While initial reports from Zhao suggested a stolen amount of around $100 million, a later blog post from BNB Chain revealed a more significant loss. Hackers managed to withdraw a total of 2 million BNB tokens, valued at roughly $570 million at the time.
The fate of the stolen crypto remains unclear. While a majority of the BNB tokens reside in the hacker’s digital wallet,Binance estimates about $100 million worth remains unrecovered.
BNB, the native cryptocurrency of the BNB Chain and the world’s fifth-largest token with a market value exceeding $45 billion, was directly impacted by the hack. According to crypto researcher Elliptic, the attacker minted a significant amount of new BNB tokens before converting most of the stolen funds into other cryptocurrencies like Tether and USD Coin.
BNB Chain responded to the attack by temporarily suspending its blockchain for several hours before resuming operations. The chain claims to have contained the incident by contacting its validators, the individuals responsible for verifying transactions on the blockchain.
To prevent future attacks, BNB Chain plans to implement a new “governance mechanism” and increase the number of validators. This incident serves as a stark reminder of the vulnerabilities present in the rapidly evolving world of cryptocurrency. As the industry continues to grow, robust security measures will be crucial for building trust and ensuring user safety.
