BounceBit Chain to Sunset as $286.5M Exploit Forces Reissue

BounceBit has announced it will permanently shut down its L1 blockchain following an exploit that led to the unauthorized transfer of approximately 286.5 million BB tokens. This action, revealed by CryptoTwitter commentator @WuBlockchain, raises significant concerns for the project’s future and its users. The exploit was initiated due to a protocol-level authorization flaw, prompting the need for a complete reissue of BB tokens as a BEP-20 token on the BNB Chain.

What Happened

In the wake of the exploit, BounceBit has outlined its plan to sunset the BounceBit Chain and transition to a new model. The attacker managed to exploit a vulnerability, transferring 286.5 million BB tokens from nine mainnet accounts without authorization. Notably, the project had previously raised $6 million in a seed funding round, which included investments from notable entities like Binance Labs and Blockchain Capital. Despite this setback, BounceBit assures that its CeDeFi, Prime, and RWA products remain unaffected.

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