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pNetwork Gets Hacked for $12 Million in Wrapped BTC

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@xabi
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Evening

pNetwork , a cross chain defi bridging protocol announced on Sunday that it suffered a loss of 277 pBTC(worth around $12.5 million) as result of hackers exploiting a bug in the platform's protocol.

pBTC is the version of wrapped Bitcoin on pNetwork. Wrapped Bitcoins are created to be utilized in myriad of defi applications on host network. To mint wrapped version of BTC, the same amount of BTC must be locked on native blockchain. The wrapped BTC which is compatible with host blockchain, tracks price of the original asset.

The details of pNetwork hack are not known, however the company tweeted that the hacker was able to leverage a bug in its codebase and drained the pBTC from Binance Smart Chain. Rest of the assets remained unaffected.

The bug has been identified and being patched, the pNetwork bridge is expected to be back online soon. pNetwork team has also appealed to the good will of hackers to return the stolen funds and in turn offered clean $1.5 million bug bounty. But no response from the exploiters so far.

As per pNetwork they are still working on a solution to assuage the losses of affected users. But it is reasonable to assume that the stolen pBTC are gone with very little chances of recovery. pNetwork and their may find solace in the fact that other asset were not affected, as the protocol holds about $190 million worth assets locked.

Following the exploit the price of pNetwork’s governance token PNT(a BSC token) took a serious hit and dropped from $1.14 to $0.886 in 24hr as per Coinmarketcap. The token is currently exchanging hands at around $0.955.

Posted Using LeoFinance Beta