BounceBit Axes Own Blockchain After Exploit Allows $3.1 Million Token Transfer

YZi Labs-backed BounceBit has decided to shut down its Layer 1 blockchain after an attacker exploited a flaw in the network's authorization system. The issue allowed the attacker to move 286.5 million BB tokens, worth more than $3.1 million, without approval from the account holders.

The team behind BounceBit initially considered repairing the network but ultimately decided that rebuilding it would require too much work due to the discontinued Evmos codebase used by the chain.

Instead of rebuilding, BounceBit will reissue BB tokens on the BNB Chain. The new balances will be based on a snapshot taken at block 20,697,260 before the first unauthorized transfer. Users do not need to apply for the new tokens as they will be credited automatically to their corresponding BNB Chain addresses.

The project's decision to shut down its own blockchain is expected to allow it to focus resources on its existing products operating on BNB Chain. BounceBit's CeDeFi, Prime, and RWA products were not affected by the exploit and will continue to function.