BNB digital tokens are Binance's won version of a cryptocurrency, just like Ethereum, Bitcoin, and others. Each BNB token has a value of around $284. When the hack was initially discovered, the estimation was that the hackers had only stolen tokens worth around $100 million, but as the company took a closer look into the theft, they realized the figures were much higher than previously estimated.
In fact, some speculations suggest that the value of the lost currency could be even as high as $750 million. But the company is still maintaining that they only lost a figure as low as $570 million. They also claim that they were able to freeze tokens of up to $7 million through the help of the crypto community and various security operations.
While we don't know the exact amount even now, what we do know is that the hack targeted the BSC Token Hub, which is the bridge between two Binance systems. They used an exploit in this system to generate extra BNB tokens on the networks rather than actually steal other people's stored currency. This still raised concerns about the security of the whole currency exchange system, even outside the Binance network.
After all, this isn't the first crypto exchange to be hacked this year. In fact, reports suggest that hackers have stolen upwards of $2 billion worth of crypto in just the first half of this year. A similar theft of around $600 happened to the popular crypto-gaming platform Axie Infinity, with the hackers being traced back to North Korea.
The worst part is the company and the crypto industry at large are having a hard time finding a way to plug these vulnerabilities before they are exploited. This shakes the confidence of investors, who now see the entire digital currency market as something that isn't exactly secure. This is a hard blow to take at a time when various cryptocurrencies are already losing a lot of value due to market fluctuations.
For now, Binance has asked the network validators to pause their work while they try to find a way to recover some of the lost tokens and create more robust systems to prevent such a thing from happening in the future. We will keep you informed about any developments that take place, along with other news from the world of blockchain and crypto.
