Decentralized finance protocol pNetwork loses $12,7 million from users on the BSC due to a vulnerability present in its code.
The pNetwork developers reported via Twitter that the decentralized finance protocol had been compromised, losing a total of 277 pBTC, a version of bitcoin wrapped in the protocol, with a value of more than $12 million at the time of the attack. . The hack was possible due to a bug present in the protocol code DeFi, the team acknowledged in its publication.
The hacker managed to exploit the bug by stealing almost all of the collateral deposited in the pBTC cross-chain bridge on the BSC. As reported by the development team, the other existing bridges within the DeFi protocol, which connect with other networks block chains, were not affected by the hack. At the same time, they assured that the error present in pBTC in BSC has already been identified and they are working on it to correct it as soon as possible. Losses at the time of the exploit amount to $12,7 million, leaving several hundred protocol users affected.
Bridges to other blockchains were stopped in an attempt to maintain security. The development team reported that these bridges would be progressively reactivated in the coming days. As of press time, the pBTC bridge on BSC will remain down until further notice, while the pBTC on EOS, pBTC on Telos, and pLTC on EOS bridges are already active with additional security measures and longer processing time.
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$1,5 million reward
The developers of the DeFi protocol are offering the hacker a $1,5 million bug bounty, in the hope that he will return affected users' funds. In their Twitter post, they explained that the goal is to make the decentralized financial ecosystem continue to grow, so returning funds after detecting a bug or vulnerability would be the right path.
The possibility of the hacker returning the funds is remote and, at the time of this publication, he has not established communication with the protocol developers.
pNetwork points out that it maintains some 185 million in cryptocurrencies wrapped in its protocol, so losses in pBTC represent about 6,7% of the total funds locked. Wrapped tokens are versions of the original cryptocurrencies on other blockchain networks.
DeFi Hacks
In the last year, DeFi hacks have become popular to the point where losses within this ecosystem represented 69% of the total losses suffered in the crypto industry as a result of hacks and cyberattacks for the month of August.
The latest report from CipherTrace, a well-known blockchain forensics firm, noted that attacks on DeFi this year had caused losses of $474 million. However, after publishing this report, the decentralized finance ecosystem suffered what until now is the Biggest hack in DeFi history. The decentralized protocol poly network lost a total of $613 million on August 10, although two weeks later the hacker, known as “Mr. White Hat” reached an agreement with the developers returning all of the stolen funds.
Other protocols that were also recently violated were The DAO Maker, a decentralized organization that lost $7 million due to an error in its funding platform contract. It is worth clarifying that The DAO Maker has no relationship with the DeFi MakerDAO or the Maker Foundation. The protocols cream finance y xToken They were also breached last month, losing nearly $30 million together.
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