- Binance blockchain was hacked and is suspected to have lost a large sum.
- The exchange announced a temporary suspension of activities.
- The BNB price fell almost 3.7% down after the news of the hacking.
According to the latest reports, the popular crypto exchange Binance is suspected to have lost almost $100 million worth of crypto in a hack. As a result, the blockchain was forced to temporarily suspend its services, due to what they termed “irregular activities”.
The transactions were suspended on the findings that a huge sum was lost in a suspected exploit on a bridge between two blockchains.
The CEO and founder of Binance, Changpeng Zhao said on Twitter that the exploit happened at BSC Token Hub, a cross-chain bridge that enables the transfer of digital assets and information between two blockchains.
Zhao conveyed his apologies for the inconveniences and added that the “funds are safe”:
According to several sources, a detailed investigation showed that almost 2 million Binance tokens worth $566 million were stolen. However, it is identified that the hacker is still trying to bridge the funds from BSC to Ethereum, Fantom, and Arbitrum blockchains. Nonetheless, this information has not been confirmed by any official sources.
Consequently, the question of the stability of decentralization started arising from the crypto community. The possibility of hacking made traders suspicious about the reliability of decentralized finance systems, which is evident from specific tweets.
As the news of exploitation and the resultant loss broke out, the price of BNB has fallen 3.7%. In the last seven days, the price of the coin had fallen by 11.31%. And, most recently, after the hack, the pace of the fall intensified.
The exact reason or mode of attack is still unknown, but there are rumors that the hack is an “inside job” and that the coins were stolen by a smart contract.
Meanwhile, Binance tries to assure the traders about the security of the company by saying: “To confirm, we have suspended BSC after having determined a potential exploit. All systems are now contained, and we are immediately investigating the potential vulnerability. We know the Community will assist and help freeze any transfers. All funds are safe”.
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