DeFi pNetwork protocol loses $ 12 million in tokenized Bitcoin

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One of the threats facing the crypto community is the attack by cyber criminals. Many exchanges, projects and applications are often confronted with one exploitation of vulnerability or another.

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

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pNetwork promotes the movement of digital assets in different blockchains. Just like several other wrapped token protocols, they allow users to hit pBTC via BTC deposits in a smart contract. This process allows users to migrate their BTC value out of the Bitcoin platform and place it on EVM compatible chains.

Information about the hack was disseminated via a Twitter ad from pNetwork, lamenting the loss of 277 pBTC. From the tweets, we learned that hackers have taken over most of pNetworks’ collateral.

According to the pNetwork team, the hackers exploited a bug in the network code base. The tweet says:

“They attacked pBTC on BSC, siphoning up to 277 bitcoins which serve as collateral. But other bridges were not affected, because the other funds are intact.

PNetwork team to resolve issues

According to the pNetwork team, they are already fixing the problem. They also offered 11.5% of the siphoned funds to hackers if they could return the stolen funds.

They have gone ahead to address the hacker, we are prepared to offer a reward of $ 1,500,000 if they can return the stolen funds.

At this time, there is no update from the pNetwokt team regarding the exploit. They have yet to talk about plans to reimburse users who have been affected by the theft.

Effects of hacking

After the exploit, the pNetworks PNT governance token crashed in the last 24 hours.

pNetwork lost nearly 8% of its price in the last 24 hours as a result of the hack | Source: PNTUSD on TradingView

pNetwork is not the only cross-chain platform that has fallen victim to these exploits. For example, THORChain, a decentralized exchange, also fell victim to hackers last July. After the first hack, the platform suffered another hack worth $ 8 million.

However, THORChain was fortunate enough to be hacked by a white hat hacker, who promised to return the stolen funds for a 10% reward on the stolen funds.

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

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Additionally, there was another record-breaking Poly Network hack in early August. This hack resulted in a loss of $ 253 million from BSC and over $ 600 million in total losses. Fortunately, the hacker returned almost all of the stolen funds.

Featured image from Revain, charts from TradingView.com

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