Hacker Who Exploited Binance’s Cross-Chain Bridge To Get Identified Soon: CZ
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The hacker(s) responsible for the $570 million exploit on Binance’s cross-chain bridge, BSC Token Hub, earlier this month is about to be identified.
Changpeng “CZ” Zhao, CEO of Binance, stated in a recent interview with CNBC’s “Squawk Box Europe” that the company had received significant tips from law enforcement officials to identify the hacker(s) who stole two million BNB tokens.
Over the past year, several attacks have targeted cross-chain bridge vulnerabilities. According to a recent report by Chainalysis, 13 cross-chain bridge attacks totaling $2 billion in cryptocurrency were largely committed in 2022. CZ claimed that as a result, the team is “following” the bad guys and working to identify the offender(s).
According to the most current report from the executive, the BNB blockchain was able to stop the hacker from taking the majority of the targeted funds by freezing 80% to 90% of them. He continued by saying that the real loss was “far smaller” and that Binance still had control over “the vast majority of the funds.”
Worsening Cross-Chain Bridge Exploits
Users can effectively migrate crypto assets from one chain to another with the aid of cross-chain bridges. These offer a well-liked method for resolving problems with multichain scaling. However, the difficulty of creating and then auditing them, along with the enormous sums of money trapped in their smart contracts, have attracted dishonest organizations.
According to Token Terminal’s most recent research, cross-chain bridges are the weakest spot in the decentralized finance (DeFi) space and are responsible for almost 50% of exploits. The cross-chain bridges had been burglarized for more than $2.5 billion over the previous two years, according to the crypto data source.
While cross-chain bridges built using the Cosmos Inter-Blockchain Communications (IBC) protocol have mainly been successful in preventing such attacks, the same cannot be said for those built using blockchains powered by the Ethereum Virtual Machine.
In fact, the bulk of cross-change vulnerabilities, so far, has taken place on EVM blockchains, including the Nomad bridge hack, the Wormhole token bridge hack, and the Axie Infinity Ronin bridge hack.
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