bZx Network lost $55M worth private key due to a hacking attack

A hacker stole a private key from bZx Network and drained $55 million worth of crypto assets. 

According to reports, a hacker tricked the bZX network and stole its private key from its Smart contract on the Polygon network & BSC network. 

bZx team shared about this matter on Twitter and wrote 

“It appears private key controlling the Polygon and BSC deployments was compromised, leading to loss of funds,”

A blockchain team, SlowMist reported about the exact funds exploited in this hack attack. According to SlowMist, hackers drained around $55 million. 

At this moment, most of the Twitter users claimed that it is only a part of an insider job because “how a blockchain project may face hacking attacks at every 3 to 6 month interval time”. However, in last year’s attack, the bZx team confirmed that they recovered the lost funds. 

Reports confirmed that the whole lost fund includes 75% of the assets of their users, while only 25% includes only the wallet fund of the bZx team. 

The bZx team said that the Ethereum smart contract system is fully safe because the private key of the Ethereum Smart Contract blockchain is a multi-party contract and governed through a DAO.

Earlier this, bZx faced a hack attack but at that time the team claimed that they recovered their funds fully.  But it is worth it to note that all the crypto projects on the Binance Smart Chain (BSC) network and Polygon are facing huge attacks. The main reason behind the attacks is lack of development or something else, still unclear. 

In the past, the Hack attack on the Polygon network was the biggest but that was a good-hearted hacker, who returned the fund back and also refused to accept a Bounty reward & Job position.

Read also: Canadian Robinhood crypto Exchange lists Shiba Inu token