BNB Chain Core has unveiled a comprehensive strategy to recover from a security breach that occurred in October 2022, resulting in significant losses.
The attacker managed to exploit the BNB Bridge, accumulating 630,240 BNB supply and borrowing 58,440,000 USDT and 37,440,000 USDC.
After more than a year of meticulous planning, BNB Chain Core is taking decisive steps to address this issue without resorting to market liquidation of BNB tokens.
Forced liquidation mechanism to settle outstanding debts
BNB Chain Core’s recovery plan centers around executing a forced liquidation mechanism to settle the outstanding debts of the exploiter. As of December, the exploiter’s balance consists of 630,240 BNB in supply, 58,440,000 USDT, and 37,440,000 USDC in borrowings. To unlock the BNB supply, it is imperative to clear the exploiter’s debt.
The background of the exploit
The security breach in October 2022 resulted in a temporary pause of the BNB Smart Chain (BSC). During this breach, the exploiter managed to generate $566 million in BNB tokens, with only $137 million successfully transferred to other chains. The attacker utilized Venus, using 900,000 BNB as collateral to secure loans in various stablecoins, including USDT and USDC.
BNB Chain Core’s recovery plan represents a significant step towards restoring confidence in the ecosystem after the 2022 exploit. By systematically addressing the exploiter’s debt and utilizing recovered assets to repay losses, the BNB Chain community aims to recover from the security breach while minimizing disruptions to the market.
The announcement of BNB Chain Core’s recovery plan has garnered attention from the crypto community. Traders and investors are closely monitoring the situation, as the successful execution of this strategy could have positive implications for BNB and other associated tokens.