Cryptocurrency exchange Binance’s BNB Chain is back up and running following an estimated $100M cross-chain bridge hack that led to the illicit transfer of digital assets and sensitive information.
The world’s largest exchange tweeted Friday morning (Oct. 7) that the network is back online.
“We have now resumed @BNBCHAIN deposits and withdrawals on #Binance. Thank you for your patience.”
Binance CEO and founder Changpeng Zhao said on Twitter that the hack’s origin sprung from its cross-chain bridge BSC Token Hub, which facilitates the movement of digital assets and information from one independent blockchain to another.
“The issue is contained now. Your funds are safe,” Zhao tweeted.
The company said in a blog post on Friday (Oct. 7) that it was able to contain the situation by “contacting community validators one by one,” a process that wasn’t as time-efficient as it would have preferred but one that was “able to minimize the loss.”
See also: Latest Crypto Bridge Hack Exposes Key Ecosystem Weakness
Cross-chain bridge hacks, which enable the transfer of digital assets and information between independent blockchains, are an escalating problem, with over $1 billion swiped in recent months, PYMNTS reported in June. Harmony’s Horizon $100 million bridge exploit in June marked the third major hack of its kind in 2022.
In the Binance exploit, the BSC suspended transactions and fund transfers after detecting unusual activity that possibly pointed to an issue happening across a bridge between two blockchains.
“Due to irregular activity we’re temporarily pausing BSC. We apologize for the inconvenience and will provide further updates here. Thank you for your patience and understanding,” the blockchain network tweeted on Thursday night (Oct. 6).
Read more: Hack of Crypto Payments Bridge Turns into $190M DeFi Free-for-All
Because decentralized chains “are not designed to be stopped,” Binance said in the post, containing the incident wasn’t an easy maneuver. The BNB Smart Chain has 26 active validators and 44 in different time zones.
“Thanks to the assistance of all the security experts, projects, and validators, the vast majority of the funds remain under control,” per the post.
On-chain governance votes will determine “four actions for the common good of BNB,” which includes decisions about dealing with the hacked funds, bug bounties, and White Hat practices.
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