Wednesday, October 27, 2021
HomeCryptocurrency$12.4M Misplaced as DeFi Platform pNetwork Suffers Exploit

$12.4M Misplaced as DeFi Platform pNetwork Suffers Exploit


Key Takeaways

  • Cross-chain interoperability mission pNetwork has reported that $12.4 million in tokenized Bitcoin has been stolen from its bridge contract.
  • A bug within the bridge allowed a hacker to steal 277 pBTC.
  • pNetwork is certainly one of a number of cross-chain interoperability tasks to endure an exploit in latest weeks.

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pNetwork is the newest cross-chain interoperability mission to endure a multi-million greenback assault.

pNetwork Suffers Hack 

pNetwork, a cross-chain asset switch protocol, has suffered an exploit.

The DeFi mission introduced that $12.4 million price of wrapped Bitcoin had been stolen from its bridge contract late Sunday. The contract lives on Binance Good Chain.

pNetwork permits the cross-chain switch of Bitcoin and different property throughout different Layer 1 blockchains comparable to Ethereum and Binance Good Chain by means of pegged tokens (pTokens). Anybody can use pNetwork to lock their Bitcoin as collateral within the particular bridge contract and mint tokenized Bitcoin, often known as pBTC.

Resulting from a safety vulnerability within the bridge connecting Bitcoin and Binance Good Chain, the unknown hacker was capable of extract nearly all of the deposited Bitcoin.

Although the workforce has not but disclosed exact particulars, it mentioned it had fastened the bug, including {that a} autopsy report would observe. It additionally provided the hacker a $1.5 million bounty for the secure return of the funds, and mentioned that the bridges would run with “additional safety measures in place for the primary few days.”

pBTC is certainly one of many tokenized Bitcoin projects that enables the highest crypto asset for use in DeFi purposes throughout a number of chains.

Cross-chain interoperability for property like Bitcoin is considered certainly one of crypto’s high issues to unravel, however to this point, few foolproof options have emerged. Implementing cross-chain bridges is sophisticated as a result of it requires interaction between a number of networks and contracts. Many bridges providing interoperability between blockchains compromise on safety, which makes them inclined to assaults.

The pNetwork is just the newest in an inventory of a number of cross-chain mission exploits. In August, the interoperability mission Poly Network was hacked for $610 million in what was described as the largest DeFi heist ever; the hacker later returned the funds.

Along with Poly Community, ChainSwap, AnySwap, THORChain have all suffered assaults price hundreds of thousands of {dollars} in latest months.

pNetwork’s governance token PNT has additionally been hit arduous by the incident, at present buying and selling about 20% in the red at $0.91.

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