The popular cryptocurrency exchange Binance may have lost almost $100 million worth of cryptocurrency in a hack, according to the most recent news. Because of what they called “irregular activities,” the blockchain had to temporarily shut down its services.
We’re putting BSC on hold for now because it has been acting strangely. We’re sorry for the trouble, and we’ll let you know if anything changes. Thank you for being patient and having an open mind.
— BNB Chain (@BNBCHAIN, 6 October 2022)
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Transactions were stopped after it was found that a huge amount of money was lost through a possible hack on a bridge between two blockchains.
Changpeng Zhao, the CEO and founder of Binance, said on Twitter that the hack happened at BSC Token Hub, which is a cross-chain bridge that lets digital assets and information be moved between two blockchains.
Zhao said that he was sorry for the trouble and that the “funds are safe”:
A bug in BSC Token Hub, a cross-chain bridge, gave people more BNB. We’ve asked all validators to put BSC on hold for now. The problem has been solved. Your money is secure. We’re sorry for the trouble, and we’ll let you know if anything changes.
— CZ Binance (@czbinance) (6 October 2022)
A thorough investigation, according to several sources, showed that almost 2 million Binance tokens worth $566 million were stolen. But the hacker is still trying to move the money from BSC to the Ethereum, FANTOM, and Arbitrum blockchains. Still, none of these facts have been confirmed by official sources.
So, people in the crypto community started to wonder about the stability of decentralisation. Traders were worried about the security of decentralised financial systems because they could be hacked, as some tweets show.
As soon as people heard about the exploitation and the loss it caused, the price of BNB dropped 3.7%. The price of the coin had dropped by 11.31 percent in the past week. And most recently, after the hack, the fall picked up speed.
Price of Seven Days’ BNB
No one knows for sure why or how the hack happened, but there are rumours that it was an “inside job” and that a smart contract stole the coins.
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Binance tries to reassure traders that the company is safe by saying, “To confirm, we have suspended BSC because we found a possible exploit. All systems are now locked down, and we are looking into the possible weakness right away. We know that the community will help us stop any transfers. All funds are safe.
After a hack, Binance stops transactions, and the price of BNB goes down. This story was first published on Coin Edition.
