Bitcoin

$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 undergo an exploit in current weeks.

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pNetwork is the newest cross-chain interoperability mission to undergo 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 value of wrapped Bitcoin had been stolen from its bridge contract late Sunday. The contract lives on Binance Sensible Chain.

pNetwork allows the cross-chain switch of Bitcoin and different belongings throughout different Layer 1 blockchains similar to Ethereum and Binance Sensible Chain by pegged tokens (pTokens). Anybody can use pNetwork to lock their Bitcoin as collateral within the particular bridge contract and mint tokenized Bitcoin, also referred to as pBTC.

Resulting from a safety vulnerability within the bridge connecting Bitcoin and Binance Sensible Chain, the unknown hacker was in a position to extract nearly all of the deposited Bitcoin.

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

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

Cross-chain interoperability for belongings like Bitcoin is considered certainly one of crypto’s high issues to unravel, however thus far, 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 barely the newest in an inventory of a number of cross-chain mission exploits. In August, the interoperability mission Poly Community was hacked for $610 million in what was described as the most important DeFi heist ever; the hacker later returned the funds.

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

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

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