BounceBit Chain Shut Down Amid Security Incident, BB Price Surges

BounceBit Chain, a first-layer blockchain network backed by YZi Labs, has shut down permanently following a protocol-level authorization vulnerability. The attacker exploited this weakness to transfer 286.5 million BB tokens without authorization from nine accounts on the mainnet.

The project team stated that no private keys or user wallets were compromised during the incident, and its CeDeFi, Prime, and real-world asset-focused RWA products remained unaffected. However, BounceBit Chain will not be reactivated, and the network will cease operations entirely.

As a result of the shutdown, the BB token will be reissued on BNB Chain under the BEP-20 standard. The new token distribution will be based on balances prior to the attack, with the 286.5 million BB transferred by the attacker not being carried over to the new contract.

Despite the significant security vulnerability and network shutdown, the BB price rose more than 12% today.