In what looks to be the latest theft to affect digital assets, almost $100 million worth of Binance Coin was taken, further destabilising an already disastrous year for cryptocurrencies.
As per billionaire co-founder of Binance, the largest cryptocurrency exchange in the world, Changpeng “CZ” Zhao, an exploit took place on a bridge connecting blockchains, but the problem is “contained now,” Zhao wrote on Twitter on Friday.
A representative for the blockchain BNB Chain, which is supported by Binance, estimated that the event involved $100 million to $110 million in digital tokens. The official also said that at least $7 million in stolen money had already been blocked. BSC Token Hub, the bridge, has been shut down.
This year, crypto attacks cost almost $2 billion, and many of them were carried out by organisations with ties to North Korea. A common target has been cross-chain bridges used to move tokens between blockchains.
Theft of tokens valued at roughly $100 million weighs on the currency.
The Binance ecosystem is one of the most well-known to be impacted. On Twitter, Zhao stated that “in all likelihood, Binance will cover any fund that the hackers get away with.”
The BNB Chain said that it is collaborating with security agencies to halt the transmission of stolen money. As of 10:08 am in Tokyo, Binance Coin, commonly known as BNB, was trading at around $285 after falling as high as 3.3 per cent on Friday.
Hacks and a severe market downturn that reduced the value of digital assets by almost $2 trillion have both devastated the crypto business.
The broader cryptocurrency markets welcomed the most recent events. Bitcoin’s price remained stable at roughly $20,000.
(with inputs from agencies)