The cryptocurrency exchange Binance has reported that it was hacked today. This hack made them lose over 7,000 bitcoins (worth over $40 million) and 230 million Binance coins (BNB). If true, this would make it the largest crypto hack in history. The news was first reported on the Binance website and subsequently confirmed on its Twitter page. The company posted an explanation of what happened from their perspective. They also posted some steps that users can take to ensure their security. This follows other recent hacks of smaller exchanges like Bitgrail, Coincheck, and Youbit.
Binance, a cryptocurrency exchange, unexpectedly shut down its blockchain network after hackers stole BNB tokens valued about $570 million.
Binance confirmed late Thursday that a cross-chain bridge that connects with its BNB Chain was attacked. This attack was permitting attackers to move BNB network-based tokens. Cross-chain bridges are tools that enable the movement of tokens from one blockchain to another.
According to the company, it has engaged with network validators—organizations or people who verify transactions on the blockchain—to halt the generation of new blocks on BSC. Validators have freezed all transaction processing while a team of developers will look into the security hole.
Binance’s chief executive, Changpeng Zhao confirmed that no users lost their funds in this crypto hack. He also confirmed that more details will be public soon.
What Did the Hacker Do?
The vulnerability in decentralised finance, or DeFi, where transactions are regulated by code, was brought to light by the Binance Smart Chain network hack.
Binance’s CEO, Changpeng Zhao, stated in a CNBC interview that “software code is never bug free.”
The blockchain research firm Chainalysis estimated 13 cross-chain bridge assaults in August. More than 10 assualts had resulted in the theft of almost $2 billion in cryptocurrencies in 2022. An assualt caused crypto-powered video game Axie Infinity to lose $600 million. $325 million was taken from the Wormhole network in February.
These attacks prove how vulnerable DeFi platforms are when the code controls them. They also show how decentralisation can slow down problem-solving in emergency situations. After hackers managed to hack 570$ million worth of Binance BNB, two transactions were done each of 1 million Binance BNB. These assets were then converted into other small liquid assets.
New tools are being developed to help fight back against these kinds of crypto hacks. An oracle network will launch a network allowing blockchains to request help from smart contracts by Chainlink. This network will make decisions on how to stop these assualts.
What will Binance Do Now?
Friday morning about 2:30 AM EST, Binance restarted the BNB Smart Chain (BSC). They made deposits and withdrawals possible.
The business addressed to the community for the attack. Binance praised validators for their timely response against this hack.
Binance reported that 2 million BNB were stolen using a vulnerability on the BSC Token Hub. They have promised to release an analysis with further information in the future.
An update on Binance’s website states, “There was an exploit affecting the native cross-chain bridge between BNB Beacon Chain (BEP2) and BNB Smart Chain (BEP20 or BSC), known as “BSC Token Hub”. It’s technically classified as a crypto hack. With a bounty of up to 10% of the value of the stolen assets up for grabs, the Binance Smart Chain community will vote on whether to freeze the stolen cash.
Binance detected this event right away and will suspend the offending party as soon as possible. After this incident, their security team is performing an intensive inspection of other contracts. These inspections are to ensure no others are compromised by the same problem. Further investigation from Binance will be conducted on this exploit.
How to Prevent Crypto Hacks?
Even though the cryptocurrency sector has become widely accepted during the past ten years, it has already given rise to a concept. This concept is so well-known that it is practically cliché. A harmful attack targets a person or perhaps even a digital money exchange.
As a result, a significant amount of digital currency disappears. The digital assets that the hackers take with them are impossible to track down or retrieve. These funds appear to disappear into the veil of anonymity.
There are many ways that an individual can prevent their funds or assets to breach into any hack.
Use two factor authentications:
Your account will have an extra layer of security thanks to 2FA. You get a message or email with a verification code whenever someone tries to log in. By adding this step, hackers will find it more difficult to access your account. They would need this verification code, so they might call and bribe you into giving it to them.
Divide your funds in different wallets:
Divide your funds in least 2 different wallets rather than keeping them all in one. Use a “cold” wallet for holding and a “hot” wallet for daily transactions. This will prevent all your funds to get hacked. Imagine if one basket full of apples fell out of two baskets, you will still have one basket saved.