BNB Chain Suspended Network is Now Operational

Updated: 18 hours ago

The compromised funds were initially estimated to be as high as $100 million of crypto. However, after some hours, the network shared that the exploited fund estimates were $70-80 million.

 

Table of Contents:

Introduction

What is BNB Chain?

BNB vs. Binance Smart Chain

BNB Chain Suspension: What is it all About?

Speculations on the Suspended Network


Introduction

BNB Chain, the native blockchain behind the Binance crypto exchange, is operational after temporarily being suspended due to a major exploit of $100 million. As per blockchain, network validators were upgrading community infrastructure and confirming their status.


A few hours before lifting the network suspension, BNB Chain tweeted to inform the community that the validators were working to block hacker accounts and requested the node runners to update the software. BNB Smart Chain has been running ok since 7th Oct 2022.

BNB Chain Suspsended Network is Now Operational

What is BNB Chain?

According to Binance CEO Zhao, BNB stands for Build ‘N Build. The BNB Chain is recently released and includes BNB Beacon Chain for BNB Chain governance (voting and staking) and the BNB Smart Chain, which is Ethereum Virtual Machine (EVM) compatible. The BNB Chain aims to develop the underlying infrastructure and increase interoperability of the world’s parallel virtual environment. Here are the key features of the BNB Chain:

  • Permissionless

  • Open

  • Decentralized

  • Multichain

BNB vs. Binance Smart Chain

The Binance Chain, where voting and staking occur, has changed to BNB Beacon Chain under the umbrella of rebranded BNB Chain. On the other hand, Binance Smart Chain is simply known as BNB Smart Chain and is abbreviated as BSC.


Together with BSC, BNB Chain is made of a dynamic ecosystem. The idea behind BNB is that ultimately everyone will own it and so it should be made accessible. Moreover, BNB also acts as a governance token and is used for paying gas fees on the BNB chain. BNB Chain is thus decentralized, community-driven, and open-sourced, and its health depends on the developers, validators, and community of users.


BNB Chain Suspension: What is it all About?

The compromised funds were initially estimated to be as high as $100 million of crypto. However, after some hours, the network shared that the exploited fund estimates were $70-80 million, and $7 million were frozen. As per an official post on Reddit, the genesis of the compromise was on BSC Token Hub, which created “extra BNB” in the end.


To address the situation, Changpend Zhao, CEO, and founder of Binance, tweeted about the incident and said that validators were asked to suspend BSC for containing the issues in the middle of the network suspension. Zhao also assured users about the security of their suspended funds.


Initial on-chain analysis by Twitter users before the official announcements showed that the attacker claimed a reward worth one million BNB through the token hub before the balance was deposited into the decentralized finance (DeFi) lending platform Venus Protocol. The attacker then exploited another one million BNB, which was placed into Stargate Protocol, a cross-chain bridge provider.


Speculations on the Suspended Network

Strategy lead of DeFi platform Vesper Finance, Zane Huffman, concluded that the attacker made off approximately $100 million from an exploit of $600 million, which was the figure provided by Zhao later. Huffman added that the attacker has over $400 million in digital assets frozen on the BNB chain, and more is possibly stuck in cross-chain bridges on the BNB blockchain.


Stablecoin provider Tether also blacklisted the address that was associated with the exploit.