Written by Charles Thuo
Cross-chain DeFi platform pNetwork, has become the latest victim of hackers targeting the Binance Smart Chain (BSC). According to a tweet started on September 20, pNetwork has reportedly lost 277 tokenized Bitcoins (pBTC) after hackers infiltrated the DeFi and siphoned them away.
According to the value of BTC at the time of the hack, the stolen bitcoins amounted to about $12.7 million; much of which was the network’s collateral.
The network’s team is already in the process of fixing a bug which they said was exploited by the hackers to execute the attack.
And in an attempt to recover some of the stolen funds, pNetwork offered the hackers to keep 11.5% of the funds if they returned the remaining 88.5% of funds.
The attack only affected holders of pBTC on BSC meaning that those holding pBTC on the other blockchains that pNetwork allows were not affected. At the time of writing, the team was still working on fixing the bug and there was no communication on whether it plans to reimburse the impacted users.
Following the hack, the pNetwork governance token (PNT) has plunged 14% in the past 24 hours.
Increased DeFi hacks on BSC
There has been an increase in DeFi hacks on Binance Smart Chain as its Total Value Locked (TVL) and trading volumes increase.
In July, the THORChain decentralized exchange was hacked twice, accumulating a total loss of $15.6 million to hackers within the same month, though the hacker turned out to be a white hat (an ethical computer hacker who specializes in penetration testing) and promised to return the money for a 10% bounty.
Other DeFi protocols on BSC that have been hacked this year include: PancakeBunny, bEarn, Meerkat Finance, Bogged Finance, Cream Finance, Poly Network, Uranium Finance, SafeMoon, Belt Finance, Spartan Protocol, and BurgerSwap.
Poly Network has been subject to the largest hacks on BSC so far, with $253 million of the total $600 million that was stolen from the network being siphoned through BSC. However, the hacker returned almost all the stolen funds.
pNetwork is a unique cross-chain DeFi platform that allows the movement of tokenized assets across multiple blockchains. It achieves this by wrapping the tokens of other blockchains into pTokens. For example, Bitcoin (BTC) is wrapped into pBTC, Ethereum (ETH) into pETH, Litecoin (LTC) into pLTC, etc., which can then be freely moved and used on different blockchains.
Some of the blockchains across which pNetwork users can move tokens include the likes of Bitcoin, Ethereum, EOS, xDAI, Telos, Algorand, Arbitrum, Binance Smart Chain, Litecoin, Polygon, and Dash and use it in any of the
Similarly, it also allows users to use their NFTs on any marketplace.It also allows communication between different blockchains and even gives DAO members the ability to extend their augment across different blockchains.