Key Points:

  • An exploit resulted in around $570,000 in cryptocurrency being plundered from Allbridge, but the hacker was returned when the exploiter accepted the project’s offer of a white hat prize.

  • An exploiter took funds last Sunday by manipulating the price of the liquidity pool on the BNB Chain via flash loans.

  • The project would be responsible for repaying customers who have lost money via the establishment of a recovery fund.

The Allbridge team has gone above and above to fix an attack that depleted the bridge protocol’s BNB Chain liquidity by $570,000. And their efforts were ultimately rewarded.

A significant chunk of the approximately $570,000 stolen from the multichain token bridge Allbridge has been recovered after the exploiter accepted the project’s offer of a white hat and no legal reprisal.

Update on the exploit1/ Our team was contacted by the owner of https://t.co/EW1uxXBQpD. 1500 BNB was returned to our team. The remaining funds will be considered a white hat bounty to this person.

— Allbridge (@Allbridge_io) April 3, 2023

On April 3, Allbridge said that it had received a communication from a person and that 1,500 BNB worth over $450,000 had been returned to the initiative.

It went on to say that all “received BNB” was then converted to the stablecoin Binance USD and utilized as compensation.

Peckshield, a blockchain security startup, initially spotted the April 1 hack, informing Allbridge in a tweet that their BNB Chain pools exchange pricing was being manipulated by a person operating as a liquidity provider and swapper.

Allbridge, as a cross-chain bridge, enables the movement of cryptocurrency from one blockchain network to another through a liquidity pool. According to security company PeckShield, an attacker took cash last Sunday by manipulating prices in Allbridge’s liquidity pool on BNB Chain via flash loans.

The exploiter has been actively transmitting cash to and via a number of protocols, wallets, and accounts since the vulnerability, including Centralized Exchange hot wallets and Tornado Cash. HAPI published a graphic depicting the asset flow.

BNB Chain said that using chain analysis, they have identified the cross-chain Allbridge bridge attacker and are aiding the team in retrieving cash. The protocol also includes a reward for the attacker.Allbridge offered a white hat reward to the detected hacker, closing the protocol’s bridge and reopening liquidity pools for customers to retrieve their monies.

According to the proposal, the project would be responsible for repaying customers who have lost money by establishing a recovery fund. It said that it plans to restart operations once the problem is fixed.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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