The BNB Chain, the blockchain-powered by Binance Global Inc., resumed operations around 2:30 p.m. On Friday, developers distributed a software update to end the exploit that had been used to drain approximately US$100 million from the platform.

Transactions were halted on Thursday after a hacker extracted 2 million BNB tokens — the network's native token — worth approximately $572 million before exchanging them for other crypto assets to shift them off the chain.

Fortunately, this exploit was discovered in time to prevent a large percentage of funds from being sucked up from the platform. Approximately US$100 million worth of cryptocurrency got from the platform. US$7 million in cryptocurrency has already been locked.

While $100 is a significant sum of money, Binance CEO and Founder Changpeng Zhao wrote on Twitter on Friday that it is roughly a quarter of the most recent burn — a method wherein tokens are disrupted to regulate the supply and value of the token.

In the days ahead, devs will grasp an on-chain governance vote to ascertain four actions in response to the loophole: whether it should freeze the hacked assets, whether to auto-burn the remaining funds, provide a Whitehat reward for the excess cash, and offer a bounty of up to 10% of the investments for capturing the hackers.

As the centralized exchange considers freezing the funds, these questions have sparked heated debate in the blockchain society about the value and importance of decentralization.

Despite the fact that the network is back up and running, devs have warned users that their investments may be locked if they attempt a cross-chain transfer but have repetitively assured them that their funds are secure, leaving some to wait patiently for those funds to be transferred.

BNB was changing hands at US$277 at 12:30 p.m., down about 5.5% from its pre-exploit price in Hong Kong

How did the developers manage to save the funds on BNB Chain? Drop your comments by sharing this article on social media.

Posted 
Oct 10, 2022
 in 
Crypto News
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