Hacker exploits a cross-chain bridge “BSC Token Hub”

“BSC Token Hub” faced a hack attack and impacted around $100 million worth of funds. Binance executive ordered validators to shut down the BSC network operations.

Binance Smart Chain (BSC) network is a popular blockchain network of Binance exchange, which provides high-speed crypto transactions at very low fees. Bep2 and BSC (or Bep20) are both core blockchain networks for BNB coin, where BSC is a smart contract enabled network.

On 7 October, Changpeng Zhao, chief executive officer of the Binance exchange, took to Twitter to inform his followers that BSC Token Hub, which is a cross-chain Protocol, was exploited and resulted in the birth of new BNB coins. 

Zhao confirmed that the problem is now contained because he ordered all the validators to suspend BSC. And also he confirmed that the funds are safe. 

“An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC. The issue is contained now. Your funds are safe. We apologize for the inconvenience and will provide further updates accordingly,” Zhao said.

Binance CEO further reported that the exploit resulted in the loss of $100 million worth of funds, which was 25% of the amount of BNB burned last time. 

Here Binance team only seized the operations of network activities but still, the team is searching & identifying the actual problem, which caused the exploit.

Earlier this, 5 days ago, a decentralized crypto exchange TransitSwap was exploited because of a vulnerability in its smart contract and lost around $23 million worth of crypto assets. Later collaborative efforts of crypto analytic platforms Peckshield, SlowMist, Bitrate, and TokenPocket helped the Transit Swap team to recover funds.

Traced details forced the hacker to return 70% of the stolen funds from Transit Swap. 

Read also: Google Cloud will help Near developers to scale Web3 development works