Binance Bridge Hacker Faces $30M Liquidation on Venus Amid Crypto Market Crash

The leading cryptocurrency exchange by trading volume and registered users, Binance, often faces security challenges that threaten its customers’ assets. As a private/public blockchain with over $2.83 billion in total value locked (TVL), the BSC team is undeniably working round the clock to prevent strikes from attackers like North Korea’s Lazarus hacking group. Moreover, most blockchains have an unretrievable feature once the coins are sent and confirmed by the validators.

BSC and Venus Finance Team Comes Together Over Half a Billion Exploiter

In early October last year, the Binance Smart Chain (BSC) was temporarily halted after an exploited minted 2 million BNB coins worth approximately $570 million at the time of exploitation. The hacker, however, managed to bridge over $100 million worth of BNB to other blockchains including Ethereum in stablecoins. With the BSC validator upgrade, the exploiter was denied access to the majority of the minted coins, which could have resulted in a bigger problem.

Notably, the BSC exploiter used the Venus Finance protocol, a decentralized marketplace for lenders and borrowers facilitated through stablecoins, to swap the minted coins for different stablecoins including Tether. However, the crypto community came together in aid of the BSC team to help prevent the exploiter from liquidating the assets. For instance, Tether blacklisted the USDT address on the Ethereum network used by the exploiter to prevent further damage.

Fast forward to August and the BSC team in close collaboration with the Venus Finance protocol initiated a manual liquidation of the exploiter, as per a governance proposal passed by the latter community.

#PeckShield The #BNBBridge Exploiter's position has been liquidated for ~6.89M $vBNB. The liquidator has repaid 30M $USDT. pic.twitter.com/yokVbIGuS3

— PeckShield (@PeckShield) August 21, 2023

Buy Binance Coin (BNB) quickly and securely with PayPal, credit card or bank transfer at eToro. Visit Website <<Notably, the BNB Chain team updated the users in June that its core team would take over the $BNB position on Venus Finance if the asset value hits the liquidation threshold. Essentially, the stipulated measures by Binance were announced in order to prevent BNB price sell-off. The whitelisted wallet was initially funded with $30 million in USDT with the assurance of preventing shortfall on Venus and providing additional support through the Venus governance-approved mechanism.

The Binance team has managed to absorb the exploit due to its success as a blockchain private firm. Moreover, Binance is the largest holder of BNB, which has a fully diluted valuation of approximately $42 billion. Mind you, the company could not risk tarnishing its name for a few millions of dollars with the crypto industry expected to run in trillions of dollars amid mainstream blockchain adoption.

BNB Price Outlook

According to the latest crypto market data, BNB’s price traded around $211 on Monday, down approximately 12 percent in the past week. The fourth largest digital asset is expected to bleed further in the coming days after the asset failed to hold above the 200 weekly moving average.

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