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Update: BNB Chain Announces Further Steps After 100 Million Hack

Fri, 10/07/2022 - 11:40
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Gamza Khanzadaev
BNB Chain reacts publicly after $100 million hack, declares further steps
Update: BNB Chain Announces Further Steps After 100 Million Hack
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Following tonight's events, the BNB Chain team presented a lengthy post, called Ecosystem Update, which aimed to decide with the community on the future steps of the BNB ecosystem.

Starting with an apology, the post announces the initiation of an on-chain governance vote to decide a number of issues, including whether or not to freeze the stolen funds, whether to use BNB Auto-Burn to cover remaining stolen funds, launching a future bug detection program and setting a $1 million reward for special cases and a hacker finder reward of 10% of the recovered funds.

Voting will start within a few days while the BNB Chain is being updated. In addition, a new mechanism for on-chain governance decision-making will be introduced in the future in order to eliminate the risk of such attacks in the future.

Here’s How Binance Bridge Attacker Pulled Off $566 Million Hack

What else will Binance do to resolve hack?

The hacker did not dump his stake in BNB and made the logical decision to lend 900 thousand BNB to the lender, getting $147.5 million stablecoins in the process. Thus, Venus lending protocol received a bad debt of $118.7 million, which is secured by the stolen 900 thousand BNB.

Most likely, the Binance team will write off this debt by transferring BNB to the lender, which could cause future pressure on the cryptocurrency price, as the lender would have to liquidate its position in the altcoin to recover the deposit.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.