BNB Chain is back operational after developers release a funds-saving fix
The majority of assets were recovered during last week’s BNB Chain exploit due to the early discovery and collaboration of network validators.
The BNB Chain, the blockchain maintained by Binance Global Inc., the biggest cryptocurrency exchange in the world, began operations at around 2:30 p.m. Friday, Hong Kong time, engineers delivered a software update to shut the flaw that was exploited to steal around $100 million from the platform.
Transactions were paused on Thursday when a hacker stole 2 million BNB tokens, the network’s native currency, valued at around US$572 million at the time and then attempted to remove them from the blockchain by exchanging them for other cryptocurrencies.
This attack was discovered in time to prevent the majority of assets from leaving the site, resulting in just $100 million worth of cryptocurrency leaving the network.
An official BNB Chain Reddit post said, “We’d want to thank the node service providers for their prompt and thorough response.” “We are humbled by the community’s swiftness and cooperation in freezing cash.”
While $100 is a substantial sum of money, Changpeng Zhao, CEO and creator of Binance, tweeted on Friday that the amount represents almost a fifth of the latest BNB burn – a method through which tokens are destroyed to manage the supply and price of the token.
In the next few days, developers will conduct an on-chain governance vote to choose four options in response to the exploit: whether to freeze the compromised assets, whether to auto-burn the remaining money, whether to provide a Whitehat reward for the remaining funds, and whether to pay a bounty of up to 10% of the funds for capturing the hackers.
As the centralized exchange tries to perhaps freeze the cash, these issues have prompted a heated discussion in the blockchain community over the function and worth of decentralization.
In response to the discussion, Zhao remarked in a blog post, “Between being decentralized and maybe losing your coins or utilizing a centralized service that preserves your money, most individuals today still prefer to utilize a centralized exchange [CEX].”
Even though the network is back up, developers have warned users that their cash may be stuck if they tried a cross-chain transfer. However, they have repeatedly promised them that their assets are secure, allowing some users to just wait for their funds to be processed.