in october 2022, the cyber attack happened and they stole
(theft of about two million BNB (Binance Coin) tokens, exchangeable for over $570 million in fiat currency.)
The BSC Token Hub cross-chain bridge, which connects the BNB Beacon Chain/BEP2 and BNBChain/BEP20 chains, was exploited by the hacker.
As quickly as possible, the hacker started distributing some of the funds around other liquidity pools in an effort to convert the BNB into other assets.
Binance plans to hold on-chain governance votes to decide whether to offer a 10% bounty for finding the hacker and returning the funds and to set up a bug bounty program to award $1 million to those who report serious bugs.
In order to conduct an investigation, Binance paused the BNB Smart Chain on October 6th, 2022, after acknowledging a security incident.
{no transaction can be make in the blockchain of bnb}
you can see the below twitter link
Later that day, the CEO of Binance disclosed that an exploit was used in the BSC Token Hub to send BNB to the attacker, after which Binance had asked all validators to suspend the Binance Smart Chain, as well as that the issue is contained at the moment and that customers funds are safe.
Initial estimates put the amount of money removed from the Binance Smart Chain at $100M and $110M.
the impact of this cyber attack is really huge
In the wake of the breach, BNB’s price fell by about 3.7%.
BSC (Binance Smart Chain) was started out as a fork of Ethereum, which represents a protocol and decentralized blockchain.
In the world of cryptocurrencies, bridges function in a sense by locking funds on one side of the bridge and then receiving an equal amount of other funds on the other side of the bridge.
Bridges are beneficial for connecting blockchains, but because they frequently require a central storage location to lock deposited assets, they are generally seen as being less secure than base-layer networks like Bitcoin and Ethereum.
The BSC Token Hub cross-chain bridge, which connects the BNB Beacon Chain/BEP2 and BNBChain/BEP20 chains, was exploited by the hacker.
Data in smart contract blockchains are stored in trees. The Cosmos ecosystem’s AVL tree implementation is used by the Binance Bridge.
The data representation is known as the Merkle tree. Hash functions are used to validate these trees.
Hashes are proven up the tree from the leaf nodes to the root.
Who owns what can be altered if someone is able to manipulate the data in leaf nodes while still producing hashes that are validated as accurate by higher-up nodes.
This suggests that someone might have been able to forge those proofs
This is not Binance’s first significant hack
this is just the case study of bnb hack
you can ask me anything because the language used in this thread is really hard to understand for the beginners
like normal prople cant understands hashes,validators etc
(theft of about two million BNB (Binance Coin) tokens, exchangeable for over $570 million in fiat currency.)
The BSC Token Hub cross-chain bridge, which connects the BNB Beacon Chain/BEP2 and BNBChain/BEP20 chains, was exploited by the hacker.
As quickly as possible, the hacker started distributing some of the funds around other liquidity pools in an effort to convert the BNB into other assets.
Binance plans to hold on-chain governance votes to decide whether to offer a 10% bounty for finding the hacker and returning the funds and to set up a bug bounty program to award $1 million to those who report serious bugs.
In order to conduct an investigation, Binance paused the BNB Smart Chain on October 6th, 2022, after acknowledging a security incident.
{no transaction can be make in the blockchain of bnb}
you can see the below twitter link
Later that day, the CEO of Binance disclosed that an exploit was used in the BSC Token Hub to send BNB to the attacker, after which Binance had asked all validators to suspend the Binance Smart Chain, as well as that the issue is contained at the moment and that customers funds are safe.
Initial estimates put the amount of money removed from the Binance Smart Chain at $100M and $110M.
the impact of this cyber attack is really huge
In the wake of the breach, BNB’s price fell by about 3.7%.
How The Attack Happened
BSC (Binance Smart Chain) was started out as a fork of Ethereum, which represents a protocol and decentralized blockchain.
In the world of cryptocurrencies, bridges function in a sense by locking funds on one side of the bridge and then receiving an equal amount of other funds on the other side of the bridge.
Bridges are beneficial for connecting blockchains, but because they frequently require a central storage location to lock deposited assets, they are generally seen as being less secure than base-layer networks like Bitcoin and Ethereum.
The BSC Token Hub cross-chain bridge, which connects the BNB Beacon Chain/BEP2 and BNBChain/BEP20 chains, was exploited by the hacker.
Data in smart contract blockchains are stored in trees. The Cosmos ecosystem’s AVL tree implementation is used by the Binance Bridge.
The data representation is known as the Merkle tree. Hash functions are used to validate these trees.
Hashes are proven up the tree from the leaf nodes to the root.
Who owns what can be altered if someone is able to manipulate the data in leaf nodes while still producing hashes that are validated as accurate by higher-up nodes.
This suggests that someone might have been able to forge those proofs
This is not Binance’s first significant hack
this is just the case study of bnb hack
you can ask me anything because the language used in this thread is really hard to understand for the beginners
like normal prople cant understands hashes,validators etc