Global cryptocurrency exchange’s BNB Smart Chain resumed operations shortly after a hacker exploited 2 million BNB, approximately $600 million from the cross-chain bridge.
The BNB Chain was undergoing maintenance following the exploit, and the exchange had temporarily stopped accepting deposits and withdrawals through the chain until further developments were made.
The chain later released a statement noting the team contacted community validators one by one, to stop the exploit from spreading further and they adopted a software update that would close the exploit used by hackers to drain funds off-chain.
“It was not that easy as BNB Smart Chain has 26 active validators at present and 44 in total in different time zones. This delayed closure, but we were able to minimize the loss,” the team clarified.
The BSC Token Hub was subject to an exploit with almost 2 million BNB in total withdrawn. The low-level proof was forged into a single shared library to enable the exploit.
The vast bulk of the funds are still under control thanks to all the security experts, projects, and validators.
The following four decisions will be made via on-chain governance voting for the sake of BNB as a whole:
- What to do with the hacked funds, freeze or not to freeze?
- Whether to use BNB Auto-Burn to cover the remaining hacked funds, or not?
- A Whitehat program for future bugs found, $1M for each significant bug found.
- A Bounty for catching hackers, up to 10% of the recovered funds.
The BSC validator voting function for general opinions will be activated in the coming days via a BNB Beacon Chain upgrade.
On the BNB Chain, a new on-chain governance structure will be implemented in order to prevent potential future attacks.
The BNB chain offered its gratitude to the community for moving so promptly to contain what may have escalated into a more critical situation.
“We’re sorry for any inconvenience that the suspension of BNB Smart Chain has caused, but we are truly grateful to the community for their support,” the team concluded.
