Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.
Table Of Contents
Binance, the world’s largest crypto exchange by trading volume, had to halt transactions last week after it was hit by one of the largest crypto hacks in history. It was estimated that the platform lost half a billion in crypto due to an exploit on its cross-chain bridge, BSC Token Hub, which allowed the hacker to simply request new tokens, and the system delivered them.
The exchange insisted that the users’ funds were safe and that the stolen tokens were brand new, created by the attacker. Following the incident, many have rushed to help Binance in tracking down funds, identifying and fixing the flaw, and in any other way, they could contribute in. NEST Protocol is among those who decided to help with fixing the flaw by offering a reward for anyone with technical knowledge that could be of use.
NEST Protocol offers 100k NEST to those who can help identify the flaw
According to its announcement on Twitter, NEST DAO has agreed to sponsor a reward of 100,000 NEST, or roughly $2,400, for those who can provide clues about the BNB Chain vulnerability and how to fix it.
Due to the quick response of the #BNB chain, the assets are safe and the #NEST DAO is willing to sponsor a reward of 100,000 NEST for those who provide clues to fix the vulnerability.@BNBCHAIN https://t.co/uORCfhBmiq
— NEST Protocol (@NEST_Protocol) October 7, 2022
As the NEST Protocol noted, Binance reacted quickly, and while the original hack did result in the theft of over half a billion dollars in crypto, the exchange suspended the chain before the hacker got the opportunity to transfer all of the funds out of its system. The move resulted in around $100 million in crypto vanishing from the blockchain. As for the rest, it was trapped on the blockchain before the hacker could remove it, and so the funds remain contained.
According to the exchange’s CEO, Changpeng Zhao, the amount that the hacker did manage to steal is between $100 million and $110 million.
A matter of concern for the entire crypto world
The incident has clearly shaken the crypto industry quite a bit, given the size and severity of the hack. Binance lost quite a massive amount, and that is only one-fifth of what was initially targeted, and only the quick reaction of the validators managed to contain the rest of the funds.
With that said, it is no surprise that projects throughout crypto industry are concerned and wishing to help, as it is in everyone’s interest for the vulnerability to be registered and fixed, especially since it is a vulnerability found on a cross-chain bridge. The future of Web3 lies in interoperability, and so this technology needs to be flawless in order for Web 3.0 to be a success.
NEST has yet to share the details of how users can win its reward, whether and how it will be split, and alike, but for now, it is encouraging to see the crypto community taking care of its own.
To learn more about NEST, visit our Investing in NEST guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.