Binance Says $100 Million Stolen in Latest Crypto Hack

Binance founder Changpeng Zhao, aka CZ, is interviewed at the Tech Entrepreneurship and Innovation Expo in Paris on May 16, 2022.

Binance founder Changpeng Zhao, aka CZ, is interviewed at the Tech Entrepreneurship and Innovation Expo in Paris on May 16, 2022.
photo: Eric Pyrmont (Getty Images)

Binance estimated that its cryptocurrency BNB was worth around $100-$110 million, according to a tweet by CEO Changpeng Zhao, which was stolen by unknown hackers on Thursday, well below $566 million. initial estimate. But if you have a Binance account, don’t worry, your cryptocurrencies are safe. Hackers appear to have been able to convince blockchain networks to produce more BNB out of thin air, rather than stealing anyone’s specific cryptocurrency.

The vulnerability caught by the hackers is apparently a link between the BNB Beacon Chain, which uses an older BEP2 technical standardand the BNB chain, which uses the newer BEP20 or BSC standardaccording to Zhao. Of which about $7 million Hacker-created BNB Zhao reports that it has been frozen.

“The utilization of the cross-chain bridge BSC Token Hub has resulted in additional BNB. We have asked all validators to suspend BSC. The issue is now covered. Your funds are safe. We are sorry for the inconvenience. Apologies and further updates will be provided accordingly,” Zhao tweeted late Thursday.

Binance Smart Chain suspends trading at around 6:20 p.m. ET on Thursday and rolls out a solution to the problem Github Friday around 1:00am.

In an update shortly before 3:00am, BNB Chain tweeted That“Validators are confirming their status and community infrastructure is being upgraded.”

Hackers often target bridges between blockchains, a weakness that has created a trove of loot for thieves in recent months.About $190M worth of cryptocurrency stolen in similar hack on Nomad network August. Wormhole bridges were also hacked and lost about $325 million. February.

Bridges allow blockchains with different cryptocurrencies to communicate and transact with each other without intermediaries. In Thursday’s hack, the BNB beacon chain used proof-of-work and had limited functionality, The BNB chain, on the other hand, uses proof-of-stake, which makes it easier to communicate with the Ethereum network.

BNB, the third most popular cryptocurrency, It was trading around 3% lower at $285 on Friday morning.Bitcoin, the world’s most popular cryptocurrency, also fell by around $19,959. Second most popular Ethereum edged down to $1,355.



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