Binance Smart Chain (BSC) got exploited last Thursday. Subsequently, developers shut down the chain to prevent transactions in and out. The network is currently back online after validators installed a security update.
Binance Initiates New Security Protocol As BSC Resumes
On Friday, at approximately 02:30 PM Hong Kong time, Binance reopened the BSC network. Consequently, activities commenced effectively, with deposits and withdrawals going through successfully. However, this was after BNB chain validators launched a software update to secure users’ funds.
For context, on Thursday, a hacker, or hackers, hacked Binance’s blockchain. Amid the hack, they plundered over $100 million from the bourse. Hash transaction record also revealed an authentication of 2 million BNB tokens freshly minted.
The tokens were worth $572 million during the time of the attack. The attackers attempted to exchange the assets for others to ship them off the mainnet. But developers soon discovered the scenario and took measures to interrupt it.
Binance’s team authorized an instant but temporary suspension of activities on the chain. Therefore, only $100 million in digital assets got off the exchange. Afterward, Binance froze $7 million worth of crypto for security reasons.
Later, BNB Chain Reddit account handlers posted an appreciation message to the BNB community. Node providers received accolades for their timely and adept response to the situation. Likewise, the community got praised for their support and lack of hesitation to protect funds.
Binance Proposes A Vote On The Next Step
Changpeng Zhao, Binance’s CEO, posted on Twitter that $100 million is a large sum of money. That was 25% of the last amount of BNB burned. Burn is a term in crypto denoting reducing a token’s supply to control its price.
Furthermore, the Binance team forwarded an on-chain governance vote on four futuristic plans. Firstly, to freeze the funds that got hacked. The second is to enact an auto-burn of funds remaining.
The third is to raise a white-hat bounty of the taken funds. Lastly, to put a price on the hackers of 10% of the funds recovered.
Meanwhile, the plan to freeze funds triggered an intense controversy within the community. Some questioned the existence of decentralization often pushed by the platform.
CZ responded to the community via a blog article to address the issue. He said most people would prefer centralization if it guarantees the safety of their coins. Then added that decentralization without asset security isn’t a rational option.
In addition, Centralized Exchanges(CEX) are trending nowadays due to the services they offer. CEXs provide gradual passage into accessing digital assets. Besides, they fill the void between Decentralized Exchanges (DEX) and Centralized Exchanges(CEX), he said.
Validators informed users who authorized on-chain transactions ahead of the hack that they may experience a delay. Although all funds are safe, it would only take some time to complete. So, their patience is required while everything gets resolved accordingly.