November 24, 2022
  • November 24, 2022

Binance-linked blockchain hit by $570 million crypto hack

By on October 7, 2022 0

LONDON, Oct 7 (Reuters) – A blockchain linked to Binance, the world’s largest crypto exchange, has been the victim of a $570 million hack, a spokesman for Binance said on Friday. a series of hacks to hit the crypto sector this year. .

Binance CEO Changpeng Zhao said in a tweet that tokens were stolen from a blockchain “bridge” used in the BNB chain, known until February as Binance Smart Chain.

Blockchain bridges are tools used to transfer cryptocurrencies between different applications. Criminals have increasingly targeted them, with some $2 billion stolen in 13 different hacks, mostly this year, researcher Chainalysis said in August.

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The hackers stole around $100 million worth of crypto, Zhao said in his tweet. BNB Chain later said in a blog post that a total of 2 million of the BNB cryptocurrency – worth around $570 million – had been withdrawn by the hacker.

The majority of the BNB remained in the hacker’s digital wallet address, while around $100 million was not “recovered”, the Binance spokesperson said via email.

BNB Chain supports BNB, formerly known as Binance Coin, which is the world’s fifth-largest token with a market value of over $45 billion, according to data site CoinGecko.

Elliptic, a London-based crypto blockchain researcher, told Reuters the hacker minted 2 million new BNB tokens before moving most of the funds to other cryptocurrencies, including Tether and USD Coin.

BNB Chain suspended its blockchain for several hours before resuming around 06:30 GMT, it said in a tweet.

BNB Chain was “able to prevent the incident from spreading” by contacting blockchain “validators” – entities or individuals who verify blockchain transactions, he said in his blog post. . There are 44 validators across several different time zones, he added without giving details.

BNB Chain, described by Binance as a “community-based, open source and decentralized ecosystem,” said it would introduce a new “governance mechanism” to counter future hacks, as well as increase the number of validators.

In March, hackers stole an estimated $615 million from a blockchain bridge called Ronin Bridge, in one of the biggest crypto heists on record, ter linked by the United States to North Korean hackers.

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Reporting by Elizabeth Howcroft; Editing by Tom Wilson, Ana Nicolaci da Costa and Louise Heavens

Our standards: The Thomson Reuters Trust Principles.

Elizabeth Howcroft

Thomson Reuters

Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and money that generates “Web3”.