DeFi protocol pNetwork loses $12 million in tokenized Bitcoin


One of the threats facing the crypto community is attacks by cybercriminals. Many exchanges, projects, and applications often face one type of exploit or another.

Recently, the BSC-based cross-chain pNetwork lost at least $12.7 million in tokenized Bitcoin to attackers. They have joined many networks hacked and exploited by the encryption industry.

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pNetwork promotes the flow of digital assets in different blockchains. Just like several other encapsulated token protocols, they allow users to mint pBTC through BTC deposits in smart contracts. This process allows users to transfer their BTC value from the Bitcoin platform to an EVM compatible chain.

Information about the hacker is posted on Twitter announcement Through pNetwork, lamented that the loss was as high as 277 pBTC. From the tweet, we learned that hackers stole most of pNetwork’s collateral.

According to the pNetwork team, the hacker exploited a vulnerability in the network code base. This tweet reads:

“They attacked pBTC on the BSC and withdrew up to 277 bitcoins used as collateral. But other bridges were not affected because other funds were intact.”

pNetwork team solves the problem

According to the pNetwork team, they are already solving this problem. If hackers can return stolen funds, they will also provide hackers with 11.5% of stolen funds.

They continued to speak to the black hat hackers, “If they can return the stolen funds, we are ready to provide a reward of $1,500,000.”

Currently, the pNetwotk team has no updates about this vulnerability. They have not yet discussed plans to repay users affected by the theft.

Influence of hackers

After the vulnerability was exploited, pNetwork’s PNT governance token fell in the past 24 hours.

pNetwork has lost almost 8% of its price in last 24 hours following the hack | Source: PNTUSD on TradingView

pNetwork is not the only cross-chain platform that has fallen victim to these vulnerabilities. For example, the decentralized exchange THORChain was also a victim of hackers in July last year. After the first hacking attack, the platform suffered another hacking attack worth 8 million U.S. dollars.

However, THORChain was fortunately attacked by a “white hat” hacker who promised to return the stolen funds and get a 10% reward from the stolen funds.

Binance Smart Chain has experienced too many unexpected loopholes this year. The list of victims of BSC theft includes pNetwork, Belt Finance, BurgerSwap, Spartan Protocol, SafeMoon, Meerkat Finance, Uranium Finance, Bogged Finance, bEarn, Cream Finance and PancakeBunny.

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In addition, another record-breaking Poly Network hack occurred in early August. This hacking caused BSC to lose 253 million U.S. dollars, with a total loss of more than 600 million U.S. dollars. Fortunately, the hacker returned almost all the stolen funds.

Featured image from Revain, charts from TradingView.com





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