The most recent protocol to be targeted by a cyber attack is the DeFi bridging Protocol, pNetwork. The Binance Smart Chain-based cross-chain platform has been hacked, and an unknown hacker has stolen about $12.7 million in tokenized Bitcoin.
According to a pNetwork Twitter thread from September 20, the hacker took advantage of a flaw in the network’s codebase. As a result, they were able to escape with 277 bitcoins from the exchange. They also took the majority of the network’s collateral, according to pNetwork.
1/N We’re sorry to inform the community that an attacker was able to leverage a bug in our codebase and attack pBTC on BSC, stealing 277 BTC (most of its collateral).The other bridges were not affected. All other funds in the pNetwork are safe.— pNetwork 🦜 (@pNetworkDeFi) September 19, 2021
Meanwhile, pNetwork has made a $1.5 million offer to the hacker in exchange for the stolen funds. This amount accounts for approximately 11.5 percent of the funds. There is no information on whether or not the attacker accepted this offer at this time.
4/N To the black hat hacker. Although this is a long shot, we’re offering a clean $1,500,000 bounty if funds are returned.Finding vulnerabilities is part of the game unfortunately, but we all want DeFi ecosystem to continue growing, returning funds is a step in that direction— pNetwork 🦜 (@pNetworkDeFi) September 19, 2021
The most recent update from the protocol’s Twitter account stated the existence of a proposed fix that was awaiting review at the time of writing.
Smart-Chain Hacks That Are Similar
The pNetwork platform isn’t the first cross-chain platform to be used. In July, the decentralized exchange THORChain was hacked and lost $7.6 million. The exchange was hacked for $8 million less than a week later. The hacker, on the other hand, promised to return the funds in exchange for a 10% reward.
Poly Network, a DeFi protocol, was also involved in a world-record-breaking hack in early August. Over $600 million in assets were transferred to Polygon, Ethereum, and Binance Smart Chain (BSC) addresses by the hacker. Eventually, the hacker returned almost all of the stolen funds.
There have been several other Binance Smart Chain hacks this year alone. PancakeBunny, Cream Finance, bEarn, Bogged Finance, Uranium Finance, Meerkat Finance, SafeMoon, Spartan Protocol, BurgerSwap, and Belt Finance are among the companies on this list.
pNetwork DeFi Protocol (pNetwork DeFi Protocol)
Decentralized finance (DeFi) is a blockchain-based form of finance that offers traditional financial instruments without the use of central financial intermediaries or traditional banks. Instead, it employs blockchain-based smart contracts.
pNetwork allows users to transfer assets between +10 different blockchains, including Bitcoin, Ethereum, Dogecoin, and many others. The total value of cryptocurrencies locked in the protocol’s cross-chain bridges, according to the pNetwork website, is around $190 million. Because the hack only affected pBTC tokens on BSC, the majority of them are safe.