What's the weak link in the BNB chain?

Crypto hackers have targeted Binance, the largest global crypto exchange. The alleged exploit of the BNB Chain has revived the issue of centralized versus decentralized money once more. The theft of about $100 million worth of Binance Coin has exacerbated the crypto industry’s already a dismal year. BNB Chain consists of BNB Smart Chain and BNB Beacon Chain (BSC).

BNB Chain suspends operation

The BSC Token Hub bridge has been temporarily halted. According to the spokesperson,  at least $7 million in stolen cash have been frozen. Initial token movements suggested that an attacker targeted up to 2 million BSC tokens on Thursday evening. BNB Chain shutdown the chain after identifying problems with the BSC Token Hub protocol. It commended the validators for their rapid response.

Crypto market plummet

This year, crypto attacks have resulted in approximately $2 billion in losses, most of which have been conducted by organizations with ties to North Korea. For about 8 months now, the crypto market has been in a bear market. The value of digital assets has been reduced by around $2 trillion due to hacking and a steep decline in the cryptocurrency market.

Binance Coin falls in value

Crypto researchers have a precise estimate due to the decentralized structure of the crypto ecosystem. A post-mortem examination found that 2 million BNB, worth roughly $566 million, were stolen. Approximately $7 million worth has been frozen already.  The price of BNB has decreased by 3.7% as knowledge of the exploit has spread. The possibility of an attack shook BSC’s native BNB coin, which fell to $280.40 from $293.10 on a quiet trading day.

Many crypto aficionados attribute the breach to an “inside job.” A message from the official BNB chain Twitter account says that the chain has resumed operations  at approximately 06:40 Coordinated Universal Time (UTC) following a software update that froze hackers’ accounts.

Crypo hacks surge in 2022

Since the beginning of the crypto winter, crypto hacks have been the norm. Cybercriminals have stolen $1.9 billion in crypto as of July. According to Chainalysis’ “Midyear Crypto Crime Update, the fiat value of hacked assets will surpass the $3.2 billion lost in 2021. The majority of the hacks was attributed to attacks on decentralized finance (DeFi) protocols.

The amount of money lost in crypto scams, such as the $2 billion Ponzi scheme perpetrated by BitConnect founder Satish Kumbhani, was 65% less than the previous year. The falling value of crypto coins made them a less attractive investment opportunity for potential victims.

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