Binance Blockchain Loses $570 Million To Hackers

Binance Blockchain Loses $570 Million To Hackers

The largest cryptocurrency exchange in the world, Binance, announced in a statement on Friday, October 7, that a $570 million hack had affected a blockchain connected to it. This is the latest in a string of hacks that have affected the cryptocurrency industry this year.

Changpeng Zhao, the CEO of Binance, claimed in a tweet that tokens were taken from a blockchain “bridge” utilized in the BNB Chain, formerly known as the Binance Smart Chain until February.

According to Zhao’s post, the thieves made off with almost $100 million worth of cryptocurrency. Later, according to a blog post by BNB Chain, the hackers withdrew a total of 2 million BNB coins, valued at about $570 million.

Blockchain bridges are devices used to move bitcoins between various applications. Since 2013, 13 hacks have resulted in the theft of nearly $2 billion from them.

Approximately $100 million worth of the BNB was “unrecovered,” according to a Binance spokeswoman, while the majority of it remained in the hacker’s digital wallet address.

According to data by CoinGecko website, BNB Chain supports BNB, formerly known as Binance Coin, which is the world’s fifth-largest coin with a market value of approximately $45 billion. Before transferring the majority of the money to other cryptocurrencies like Tether and USD Coin, the hackers reportedly created 2 million new BNB coins.

BNB Chain said that it had temporarily stopped using its blockchain before restarting it at at 0630 GMT.

By getting in touch with the blockchain’s “validators,” which are organizations or people who confirm blockchain transactions, BNB Chain was “able to stop the incident from spreading,” according to a blog post. It added that there are 44 validators spread across several time zones.

In order to prevent future hacks, BNB Chain, which Binance describes as a “community-driven, open-sourced and decentralized ecosystem,” said it will add a new “governance mechanism” and increase the number of validators.

It has happened before that such a significant hack took place. In one of the largest cryptocurrency heists ever, hackers stole about $615 million from a blockchain bridge called Ronin Bridge in March. US authorities blamed North Korean hackers for the theft, which was one of the largest ever.

 

 

 

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