The cryptocurrency exchange platform’s blockchain network suffered a hack on the night of October 6-7. The criminal took advantage of a loophole in the exchange gateway between currencies to recover additional funds.
Spectacular new hack in the world of cryptocurrencies. Binance Smart Chain (BSC), the blockchain network of the same name Binance, suffered an impressive theft worth over $ 100 million on October 7, 2022. The attack allegedly took place on the night of October 6-7, with the criminal carrying out two million Binance Coins transactions ( NBB). One BNB stands at $ 286 today. The criminal was therefore initially in possession of over 566 million dollars (577 million euros).
Afterward, the hacker began distributing the stolen funds across multiple cryptocurrencies to avoid a quick freeze of assets.
At 12:20 Binance alerts its users with a first tweet : ” Due to irregular activities, we temporarily suspend the BSC. We apologize for the inconvenience and will provide further updates here. Thanks for your patience and understanding. “
A flaw in the gateway
A gateway, a bridge in the cryptocurrency vocabulary, is a protocol for linking two blockchains together. They allow you to transfer currencies from one network to another.
The hacker allegedly exploited a loophole in these transfer gateways to recover extra funds from BNB, the trading currency of the Binance application.
CZ says most of the stolen funds have been frozen and would be inaccessible to the perpetrator. However, he admits that around $ 100 million has already been recovered in a post on Reddit. It will take some time before Binance is able to estimate the total amount stolen during the hack.
The hack was also warned in cryptocurrency prices: the value of BNB fell by 4% in the night between 6 and 7 October.