For investors, consumers, and traders alike, digital security remains one of the primary concerns related to cryptocurrency. Fintech companies and crypto exchanges go to great lengths to protect their investments from hackers and other potentially malicious actors who might take advantage of a perceived weakness to steal digital assets.
Perhaps no company is more keenly aware of the need for security than Binance, the world’s largest crypto exchange company. According to a statement released by the embattled company, hackers withdrew two million BNB tokens from their network, worth a total of about $570 million. Although Binance has resumed normal operations, assuring users that “the issue is contained now” and “your funds are safe,” this breach sank the value of the cryptocurrency by over 3% overnight.
“An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB,” said Chief Executive Officer Changpeng Zhao in a tweet about the hack. “We have asked all validators to temporarily suspend BSC.”
The value of the hack was much larger than initially announced, with the original estimate by Binance claiming that only around $110 million was stolen. An estimated $100 million of BNC remains “unrecovered,” according to the company. The cross-chain bridge hack is only the latest in a string of such thefts, with an estimated $1.4 billion lost on cross-chain bridges in 2022 alone.