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Decentralized Finance BXH Network Records a Protocol Hack with about $130M in Stolen Funds

Godfrey Benjamin   Nov 01, 2021 11:05 2 Min Read


   

Decentralized trading platform BXH Network has suffered a system breach that has resulted in about $130 million from the protocol.

While the initial announcement from the company noted that only assets on the Binance Smart Chain (BSC) networks are affected, SlowMist, a security service provider in the crypto ecosystem, affirmed that more than $130 million had been stolen thus far.

With over 4000 ETH confirmed as a loss by BXH Network, the hacker’s addresses have been published with an open plea to centralized exchanges and partners to blacklist the addresses as the quest to retrieve the funds continues. When publishing the update about its protocol’s data breach, BXH noted that it had suspended transactions across all of the chains, including BSC, HECO, and Ethereum, to maintain systems safety.

The compromise of decentralized finance (DeFi) protocols is gradually becoming a regular occurrence nowadays in the digital currency ecosystem. These occurrences are largely showcasing how unsafe these protocols are, and as a result, strain the broad trust in DeFi related innovations as the next revolutionary force in financial transformation.

Per an earlier Blockchain.news report, Poly Network, an interoperable DeFi protocol, suffered the biggest breach in crypto history, with more than $610 million stolen by the hacker. The protocol contacted the hacker, christened Mr. White Hat, who returned all of the stolen funds after a series of correspondences.

BXH Network appears to be taking this approach as it appeals to the hacker to return the stolen funds. It will consider the data exploit as a white hat, with a declaration of readiness to reward the attacker for the actions. As of the time of writing, there is no confirmation of response from the hacker, a move that suggests the BXH hacker has a different motivation compared to that of Poly Network.


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