BounceBit will permanently shut down its Layer 1 blockchain and reissue BB as a BEP-20 token on BNB Chain after an attacker moved 286.5 million BB through an authorization flaw. The migration will use balances recorded before the exploit, excluding the attacker’s transfers while preserving legitimate holder balances.
According to reports from Protos, the breach did not involve stolen private keys or compromised user wallets. BounceBit said the attacker exploited a flaw in its Evmos-based network. The vulnerability allowed the attacker to move BB from nine profiles without the required authorization. As a result, the incident affected the network’s transaction rules rather than individual wallet security.
BounceBit chose to retire the chain instead of patching and restarting it. The project will therefore end its native Layer 1 and move the BB token to BNB Chain. The shift will also move BB security and settlement onto BNB Chain infrastructure. BounceBit will no longer need its own chain to handle consensus, validators, and base-layer protocol operations.
BounceBit will use a pre-exploit balance snapshot to determine each legitimate holder’s allocation. The new BEP-20 token will reflect balances recorded before the unauthorized transfers. The 286.5 million BB moved by the attacker will not carry over to the replacement contract. Instead, the migration will restore legitimate balances to their recorded pre-exploit state.
This process will allow BB to continue without the compromised Layer 1. Meanwhile, exchanges and other counterparties will need to integrate the replacement BEP-20 token.
BounceBit has not yet provided the snapshot timing, new contract address, or complete user procedure. Those details will determine how holders and trading platforms complete the transition.
BounceBit said the exploit did not affect its CeDeFi strategies, Promo Vaults, Prime, or real-world asset token products. Those services already operate mostly on BNB Chain. The project launched its dedicated chain in May 2024 and built much of its identity around a CeDeFi model. Its new structure places less reliance on native blockchain infrastructure.
Blockchain Capital and Breyer Capital co-led a $6 million funding round for BounceBit in 2024. OKX Ventures and HTX Ventures also joined the round.
Binance Labs later made a separate investment in the project. The venture unit subsequently changed its name to YZi Labs. Can BounceBit restore user confidence after moving its token onto another network’s infrastructure? For holders and developers, the transition now depends on accurate balance records and official migration instructions.
BounceBit said users should rely on its own channels for migration guidance. Unofficial instructions could expose holders to copycat schemes as the project prepares the replacement token.
BounceBit will retire its Layer 1 and reissue BB on BNB Chain after an authorization flaw allowed 286.5 million BB to move without approval. The pre-exploit snapshot will restore legitimate balances and exclude the attacker’s transfers. Holders should follow BounceBit’s official channels for the contract address, snapshot details, and migration steps.