The BNB Chain team announced on Twitter that it identified the individual behind the recent exploit on Allbridge — which caused an estimated loss of $570,000.
"BNB Chain has pinpointed the Allbridge attacker through on-chain analysis," the BNB Chain team stated, adding: "We are actively assisting the Allbridge project in recovering the stolen funds." The team declined to comment on further details of the attacker.
As a cross-chain bridge, Allbridge enables the transfer of digital assets from one blockchain network to another via liquidity pools. On Sunday, an attacker drained funds after manipulating the prices in Allbridge's liquidity pools on BNB Chain using a flash loan, security firm PeckShield first noted.
Allbridge quickly suspended its bridge protocol and offered an undisclosed bounty to the attacker — giving them a chance to avoid legal repercussions if the assets were returned. The attacker's response to this proposition is currently unknown.
At the same time, the project is also focusing on tracking down the culprit — working with teams from BNB Chain and others. "With the help of our partners and community, we are tracking the hacker through social networks like Twitter," Allbridge stated.
The project also plans to compensate affected users by establishing a "recovery fund." Allbridge said it intends to resume operations once the issue is resolved. In the meantime, a separate web interface was created for liquidity providers to withdraw their assets from its liquidity pools.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.