The pNetwork decentralised finance (DeFi) protocol, which allows multiple blockchains to communicate with one another, has been hacked for $12.7 million in Bitcoin.
By exploiting a weakness in the coding of the cross-chain protocol pNetwork, an anonymous hacker stole 277 wrapped Bitcoins valued more than $12.7 million.
The hacker exploited a flaw in the protocol’s codebase to target pBTC tokens – pNetwork’s version of wrapped Bitcoin – held on Binance Smart Chain (BSC).
pNetwork commented on the development, saying: “We’re sorry to inform the community that an attacker was able to leverage a bug in our codebase and attack pBTC on BSC, stealing 277 BTC. The other bridges were not affected. All other funds in the pNetwork are safe.”
According to the pNetwork website, more than $190 million in various crypto assets are currently trapped in the protocol’s cross-chain bridges. Most of them have remained safe after yesterday’s breach; only pBTC tokens on Binance smart chain (BSC) were compromised; bridges to other blockchains were not affected.
Soon later, the protocol’s developers detected the attack and were able to identify and remedy the flaw. The company has stated that its network is operational as usual, with the exception of the stopped Binance Smart chain bridge.
Meanwhile, the corporation has attempted to appeal to the hacker’s good nature by offering the hacker a $1.5 million reward if the stolen monies are returned.
The pNetwork addressed the hacker directly, writing, “to the black hat hacker.” Although it’s a long shot, we’re giving a $1,500,000 bounty if the cash are returned. Unfortunately, discovering vulnerabilities is an unavoidable part of the game, but we all want the DeFi ecosystem to thrive. Returning the funds is a start in the right direction.”
PNT, the native token of pNetwork, has dropped by 21% in the previous 24 hours to $0.9273.
The developers stated that they are working on a remedy for the attack’s victims and will provide an update as soon as feasible.
Since the introduction of digital payments, hackers and cybersecurity teams around the world have been at odds, and this is set to continue.