pNetwork hacked for 12.7 million dollars due to bug found in codebase
A bitcoin theft has been reported on the crypto transfer platform pNetwork, with $12.7m in the cryptocurrency stolen.
- The $12.7 million bitcoin theft happened on the site called pNetwork.
- Unknown hacker found a bug in pNetwork’s codebase.
An unknown hacker has exploited a bug in pNetwork’s codebase to steal 277 Bitcoin from the protocol’s bridge on Binance Smart Chain.
pNetwork said in a tweet late on Sunday: “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 (most of its collateral).”
It said that all other “bridges” were not affected, adding: “All other funds in the pNetwork are safe.”
On Twitter, it apologised for the outage and stated that the bridges would be reinstated in a few hours.
Later, on Telegram, the firm reported that the bridges would be reactivated in coming days with enhanced security measures in place, resulting in slower transaction processing. It said it had discovered and addressed the problem.
pNetwork offers pBTC, which is a variant of wrapped bitcoin. Wrapped bitcoin is a smart contract blockchain token that can be used as a 1:1 substitute for equivalent quantities of bitcoin. It implies that bitcoin may be used in decentralized finance (DeFi) protocols.
Wrapped assets are one of the numerous DeFi apps accessible on the market. DeFi is a developing ecosystem within the crypto sector that provides several of the same conventional services as banks and brokers, but without centralized bodies.
To make a wrapped asset, such as Bitcoin, users must store it on its native blockchain and mint a “wrapped” version that can be processed on other networks. The wrapped version, for example, records the price of the original asset but is compatible with another blockchain.
The cyberattack was carried out on Binance’s Smart Chain, which was also involved in the $610m Poly Network hack last month — the biggest DeFi heist ever.
pNetwork said it had recognized a solution and that it was “prioritising security over speed.” Since Sunday night, there hasn’t been a new tweet from the firm.
The attacker was offered a $1.5 million reward if he or she returned the money that had been stolen., adding “this is a long shot.”
“Finding vulnerabilities is part of the game unfortunately, but we all want DeFi ecosystem to continue growing, returning funds is a step in that direction,” it said.
An admin on pNetwork’s Telegram channel said: “The team is working on the post-mortem as we speak and more information about the incident will be available shortly.”
“Please bear with us during this difficult time. We will all come back stronger.”
The price of pNetwork’s governance token, PNT token, has dropped 18% in the last day.