Binance-linked blockchain hit by $570 million crypto hack

by Arthur · October 20, 2022

Binance-linked blockchain hit by 0 million crypto hack

LONDON, Oct 7 (Reuters) – A blockchain linked to Binance, the world’s largest crypto exchange, has been hit by a $570 million hack, a Binance spokesperson said on Friday, the latest in a string of hacks to hit the crypto sector this year.

Binance CEO Changpeng Zhao said in a tweet that the tokens were stolen from a blockchain “bridge” used in the BNB chain, known until February as the Binance Smart Chain.

Blockchain bridges are tools used to transfer cryptocurrencies between different applications. Criminals have increasingly targeted them, with about $2 billion stolen in 13 different hacks, mostly this year, researcher Chainalysis said in August.

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The hackers stole about $100 million worth of crypto, Zhao said in his tweet. BNB Chain later said in a blog post that a total of 2 million of the BNB cryptocurrency – worth around $570 million – was withdrawn by the hacker.

The majority of BNB remained in the hacker’s digital wallet address, while about $100 million worth was “unaccounted for,” the Binance spokesperson said via email.

BNB Chain supports BNB, formerly known as Binance Coin, which is the world’s fifth largest token with a market capitalization of over $45 billion, according to data website CoinGecko.

Elliptic, a London-based crypto-blockchain researcher, told Reuters that the hacker had minted 2 million new BNB tokens before transferring most of the funds to other cryptocurrencies, including Tether and USD Coin.

BNB Chain suspended its blockchain for several hours before resuming at around 0630 GMT, it said in a tweet.

BNB Chain was “able to stop the incident from spreading” by contacting the blockchain’s “validators,” — entities or individuals that verify blockchain transactions, the blog post said. There are 44 validators across several different time zones, it added without elaborating.

BNB Chain, described by Binance as a “community-driven, open-source and decentralized ecosystem,” said it would introduce a new “governance mechanism” to counter future hacks, as well as expand the number of validators.

In March, hackers stole about $615 million from a blockchain bridge called Ronin Bridge, in one of the largest crypto heists on record, linked by the United States to North Korean hackers.