Late yesterday, BNB Chain – part of Binance, announced that they were temporarily halting BSC or BNB Smart Chain, following “irregular activity” which was later described as a “potential exploit.” The price of BNB dropped on the news.
The thread was updated to indicate that “all funds are safe.”
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.
— BNB Chain (@BNBCHAIN) October 6, 2022
BNB Smart Chain (BSC) was previously known as Binance Smart Chain and is part of the broader blockchain ecosystem created by Binance.
Earlier today, an announcement was released indicating things are back up and running following the exploit.
In a blog post, BNB Chain apologized for the hack indicating that 2 million BNB were pilfered by bad actors. The BNB stolen represented a value of over $500 million.
“The exploit was through a sophisticated forging of the low-level proof into one common library. Thanks to the assistance of all the security experts, projects, and validators, the vast majority of the funds remain under control.”
A new onchain governance is said to be forthcoming to defend against future attacks and the team said they would publicly share a post-mortem.
“…we owe a debt of gratitude to the community for moving so quickly to minimize what could have been a more serious incident. We’re sorry for any inconvenience that the suspension of BNB Smart Chain has caused, but we are truly grateful to the community for their support.”
The ongoing hacks of crypto exchanges and ecosystems have captured the attention of regulators around the world. Over time, these digital asset service providers will most likely come under more restrictive regulation on a global basis.