BB Tokens Moved without Permission: BounceBit Abandons Its Layer 1 Blockchain

BounceBit has announced plans to shut down its Layer 1 blockchain, BounceBit Chain, after a recent attack where an attacker exploited a flaw in one of its protocol modules. The attack allowed the perpetrator to move approximately 286.5 million BB tokens from nine ordinary mainnet accounts without permission.

The vulnerability exposed a deeper issue with BounceBit Chain's underlying codebase, which was built on the Evmos stack. However, since Evmos has been discontinued, simply patching the vulnerability and restarting the network would not be sufficient to prevent future attacks.

Rather than investing significant resources in rebuilding its own Layer 1 blockchain, BounceBit has decided to relocate BB as a BEP-20 token on the BNB Chain. This decision is based on the fact that user activity is increasingly concentrated on BNB Chain, which offers 'mature security, deeper liquidity, and wallet support.'

The exchange has asked exchanges to freeze relevant funds while avoiding blanket freezes that could affect innocent users.