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BounceBit to shut its Layer 1 and migrate to BNB Chain after BB theft

The attacker moved about 286.5 million BB tokens from nine wallets, and BounceBit plans to reissue BB on BNB Chain using a pre-attack snapshot to cancel unauthorized transfers.

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BounceBit said it will permanently retire its standalone Layer 1 blockchain and migrate to BNB Chain after an authorization flaw was exploited to steal roughly $3 million worth of its native BB tokens, according to The Block. The incident occurred between Wednesday and Thursday, with block production halted about 40 minutes after the attacker’s transfers.

The attacker transferred approximately 286.5 million BB from nine wallets without compromising private keys or wallets, and BounceBit said no signature was forged and no wallet, hardware device, or exchange account was breached. BounceBit also said its CeDeFi Strategy, Promo Vaults, Prime, and real-world asset products were unaffected.

BounceBit attributed the vulnerability to a feature in the Evmos stack, on which its chain was built. Rather than patching and upgrading the network, the platform said it will reissue BB as a BEP-20 token on BNB Chain based on a pre-attack snapshot, canceling unauthorized transfers.

The Block reported that BounceBit is working with exchanges to address customer balances so users do not take losses from the exploit. BounceBit added that rebuilding the Evmos-based Layer 1 would be extremely difficult because Evmos was discontinued in May, and it said that most of its products and users are already on BNB Chain.

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