

BNB Chain Responds to 2M BNB Bridge Exploit; How Did It Happen?



BNB Chain resumed operations and apologized to the community while promising changes to prevent future hacks, following the bridge exploit.
2 Million BNB Tokens Minted in BNB Chain Bridge Exploit
BNB Chain has given an official account of the events of Thursday’s massive $580 million-plus hack after resuming operations Friday, apologizing to the community and promising to implement changes to prevent such attacks in the future.
“The exploit was through a sophisticated forging of the low level proof into one common library,” wrote the company in the response.
Translated into English, this means that the hacker(s) forged messages that convinced the bridge to send them BNB. BNB Chain’s note also included a number of actions the company will take next, including:
- Deciding whether to freeze the hacked funds.
- Deciding whether to use Auto-Burn to cover the remaining hacked funds.
- Rewarding anyone who finds a significant bug in the future with $1 million.
- Rewarding 10% of recovered funds to any party who catches hackers.
- Continuing to expand the number of community validators to further decentralize BNB Chain.
- Introducing a new “on-chain governance mechanism” on BNB Chain to “fight and defend future possible attacks.”
What Exactly Happened?
To recap, the hacker(s) exploited the BSC Token Hub cross-chain bridge – the bridge between the BNB Beacon Chain/BEP2 and BNBChain/BEP20 chains – essentially minting 2 million new BNB (value of about $580 million) that they sent to themselves in two separate transfers.
Security firms and researchers have posted several analyses of the attack on Twitter starting Thursday not long after the attack, with details continuing to be filled in as the community dissects on-chain events and analyzes the exploiter’s moves.
Security firm Ancilia, Inc. was among the first parties to notice the hack, which they were listed as having reported on BscScan shortly after the attack began.

Anonymous Twitter user and blockchain researcher “samczsun” was among the first to detail the event, which they chronicled shortly after the hack unfolded.
The first step in the attack seems to have been when the person(s) now known as the “BNB bridge exploiter” registered as a relayer for the BSC Token Hub bridge so they could position themselves for the exploit, explained samczun on Twitter shortly after the hack, along with their detailed analysis.
All that's left is to put it all together. We'll take a legitimate proof and modify it so that:
— samczsun (@samczsun) October 7, 2022
1) we add a new leaf for our forged payload
2) we add a blank inner node to satisfy the prover
3) we tweak our leaf to exit early with the correct root hashhttps://t.co/n9kYNKLOkL pic.twitter.com/zA1ZdbPvz6
“In summary, there was a bug in the way that the Binance Bridge verified proofs which could have allowed attackers to forge arbitrary messages,” wrote samczsun. “Fortunately, the attacker here only forged two messages, but the damage could have been far worse.”
Once the hacker had the money, they began moving it off-chain in what some researchers have called sloppily executed and strangely slow. They managed to move about $90 million-$110 million off, according to different accounts, using it to buy stablecoins such as USDT and USDC via Venus Protocol and borrow ETH on Fantom, among other moves. Partway into the hacker’s attempt to move the funds, Tether froze about $10 million worth of USDT the hacker had acquired with the BNB.
So in summary as of now:
— GREEN JEFF (The Bread #9) (@jeffthedunker) October 6, 2022
* 2mm $BNB ($550mm) withdrawn from Bridge
* * half of that used to mint misc. stables
* * Small amount swapped for stables directly
* stables bridged everywhere
* ~$50mm $ETH buy on mainnet
* ~$20mm $ETH borrowed: TraderJoe + Geist
* $10mm $USDT frozen
Security firm PeckShield Inc. has analyzed the event and determined that closer to $90 million was moved off-chain, including about 58% to Ethereum, 33% to Fantom, and 4.5% to Arbitrum. How much the hacker has successfully made away with is still unclear, but BNB Chain noted in their response that a full and transparent “postmortem” is in progress and results will be made publicly available in hopes of helping other projects address vulnerabilities in their own bridges.
The total stolen funds from BSC TokenHub Exploiter are 2M BNB (~586M loss), and here comes the ~$89.5m stolen funds that have been moved off-chains to others (~58% to @ethereum, ~33% to @FantomFDN and ~4.5% to @arbitrum). @BNBCHAIN @cz_binance @CoinDesk https://t.co/fuRvGSMo71
— PeckShield Inc. (@peckshield) October 7, 2022
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This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Related News


Ether Futures ETFs Hit the Market: ProShares, VanEck, and More Offer Options

This marks the first-ever ETFs based on ether futures, following the introduction of the first bitcoin futures ETF two years ago.
Summary
- A range of exchange-traded funds (ETFs) targeting the performance of ether futures have been launched.
- These offerings mark the first-ever ETFs based on ether futures, coming almost two years after the introduction of the first bitcoin futures ETF.
In a significant development for the crypto industry, a range of exchange-traded funds (ETFs) targeting the performance of ether futures have been launched. These offerings mark the first-ever ETFs based on ether futures, coming almost two years after the introduction of the first bitcoin futures ETF.
Renowned for launching the first U.S. bitcoin futures ETF, ProShares leads the charge with the launch of the ProShares Ether Strategy ETF, along with two additional offerings that provide a blend of exposure to both bitcoin and ether. ProShares’ CEO, Michael L. Sapir, expressed optimism about the appeal of these crypto-linked ETFs to investors, stating, "We think that many investors who are interested in cryptocurrencies but are concerned about custody risks, or who are challenged by the learning curve and complexities required to buy them directly, will be attracted to our crypto-linked ETFs."
Bitwise also joined the fray with two ether futures ETFs: the Bitwise Ethereum Strategy ETF and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF.
VanEck, a prominent asset manager, has also entered the arena with the VanEck Ethereum Strategy ETF. This ETF is designed to target capital appreciation by investing in ether futures contracts, providing investors with an alternative path to participate in the robust futures market centered around Ethereum.
Additionally, the VanEck Ethereum Strategy ETF has also entered the market, “designed to seek capital appreciation” through ether futures contracts. As highlighted by Kyle DaCruz, Director of Digital Asset Product at VanEck, these offerings provide a means for investors to tap into the robust futures market surrounding Ethereum.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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