The BSC Bridge Hack: Understanding One of Crypto’s Biggest Exploits
According to Coinglass, the crypto market saw over $1.04 billion in liquidations, including the liquidation of a BNB position belonging to the hacker behind the BSC bridge hack. Here’s what you need to know:
– The BSC bridge hack in October 2022 was one of the largest exploits in crypto and DeFi history, with the hacker stealing nearly $593 million in BNB.
– After the attack, the hacker deposited 900,000 BNB on Venus as collateral to borrow $150 million worth of stablecoins.
– The Venus protocol is the second-largest DeFi protocol on the Binance Smart Chain, with over $598.25 million in TVL.
– The hacker’s position on Venus was the largest potential liquidation in DeFi, posing a risk to the ecosystem if liquidated due to a further plummet in the price of BNB.
– The Venus DAO voted to whitelist BNB Chain as the sole liquidator of the hacker’s address in case of a margin call, ensuring that a drop in the price of BNB to $220 would lead to the liquidation of the hacker’s collateral.
What’s Next For BNB?
Since the hack, the price of BNB has dropped below $220 and is currently trading at $215.00, reflecting a 10.76% drop in the past 7 days. Despite facing challenges, BNB still stands strong with a market cap of $33 billion, making it the fourth-largest cryptocurrency.
Hot Take
The BSC bridge hack highlighted the vulnerabilities in the crypto and DeFi space. While the ecosystem has taken measures to mitigate the impact, such exploits continue to pose risks. As the crypto market evolves, it’s crucial for investors and protocols to remain vigilant and implement robust security measures to protect against such attacks.
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