Following an attempt on its cross-chain bridge, Binance has announced the suspension of the Binance Smart Chain (BSC). The new development comes following an exploit that resulted in the loss of an estimated $100 worth of crypto assets.
BNB Suspends Blockchain
According to the official statement from BNB Chain, the network is moving to pause BSC due to “irregular activity.” However, it added that the reason is a result of an exploit on the blockchain.
BNB further revealed that all systems are under control and are currently being investigated. Thus, it has put transactions on hold until the issue is resolved correctly.
Moreover, Binance also noted that the network is “under maintenance,” and all withdrawals and deposits have been suspended.
Talks about the exploit began spreading on Twitter about a massive hack on the BNB blockchain.
The on-chain security analytic firm PeckShield Inc. posted on its social media account that the attackers have carted away almost two million BNB coins worth roughly $600 million. At that point, no official confirmation was released by the affected network.
However, a BNB developer later confirmed the exploit with an initial estimate of the value of the stolen assets, which are worth $100 million.
According to BNB Chain, the attackers targeted the BSC Token Hub. The hackers created some “extra BNB” tokens during their exploit. The blockchain network has assured users that the situation is under control.
The Rising Hacks on Blockchain Networks
From happenings in the blockchain industry, it seems the number of hacking attacks is rising. As a transaction record system for cryptocurrency, it is fair to say blockchain technology has become an easy target for hackers.
In 2022, before the current BNB attack, just three hacking exploits caused massive damage to the industry. The three recent attacks on blockchains are:
- Wormhole Cross Chain Exploit – $325 million/February 2, 2022
- Axie Infinity’s Ronin Bridge Attack – $625 Million/March 28, 2022
- Solana Wallet Exploit – $7 Million/August 3, 2022
Accordingly, the hacking incidents have led to the loss of close to $1 billion this year. Meanwhile, this has put enormous pressure on blockchain developers to identify the pattern of attacks and patch things up before another big exploit makes the news.
Past incidences show that there are mainly two ways in which attacks on blockchain systems are effective. Hackers employed social engineering to trick unsuspecting victims into cooperating with them.
The other method attackers use is more complicated; it requires an expert-level understanding of blockchain smart contracts. Once prosperous, hackers can easily breach the security arrangements of most blockchain networks to carry out their activities.
The growing number of blockchain networks coming up implies that there are pretty much efforts for developers to put into ensuring safety. As the adoption of Web3 solutions continues to gain traction, hackers will continue to target the blockchain ecosystem.
In the meantime, a safe and secure blockchain protocol will help limit the increasing rates of hacking in the industry.