BSC Chain Suffers $500M Bridge Exploit – Audited Uniglo.io And Solana Take Investors’ Security Serious

The Binance Smart Chain experienced an exploit of its token bridge to the extent of $560M. However, the Binance exchange and blockchain team suspended the network for 24 hours. This move limited the losses to $100M, which the hacker had already bridged to Ethereum and Fantom.

Upon resumption, CZ, the founder of Binance, assured all funds were safe, and the issue contained.

Further, the Binance Smart Chain team went ahead issuing a statement that mentions that all further actions taken against the hacker will be decided via on-chain governance votes:

1.     What to do with the hacked funds, freeze or not to freeze?

2.     Whether to use BNB Auto-Burn to cover the remaining hacked funds, or not?

3.     A Whitehat program for future bugs found, $1M for each significant bug found.

4.     A Bounty for catching hackers, up to 10% of the recovered funds.

Implications for other cryptocurrencies

Everything has pros and cons, and so does decentralization. However, with the number of innovative and decentralized products released by projects, it is no surprise that hacks happen. As a result, investors are increasingly searching for cryptos with proactive teams that audit their smart contracts.

Uniglo.io is one of those projects that went ahead and audited their smart contracts before the planned launch. The ERC-20 token GLO successfully passed the Paladin Blockchain audit and continues to seek future audits by top firms after their launch on the 19th of November.

Further, for transparency and safety reasons, the project committed itself to use a 2/4 multi-sig wallet for the 'GLO Vault,' which acquires cryptocurrencies such as USDT, Decentraland, or The Sandbox to back the value of the token.

On the same note, the open-source blockchain Solana audits all of its smart contracts regularly with the audit firm Kudelski Security and tries to minimize the risks of bugs and exploits. However, in August, the Solana-based Slope Wallet fell victim to an exploit draining its users' wallets, affecting more than 8,000 users. It was later determined that a 3rd-party service used by Slope Wallet caused a vulnerability that exposed the seed phrases of all its users and not the blockchain itself.

Final thoughts

With decentralized technology and innovation, vulnerabilities can happen. Hence audits continue to increase their importance for DeFi projects such as Uniglo.io and Solana.

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