BounceBit Shuts Down Layer 1 After $3M Exploit

BounceBit's Layer 1 network will shut down after an attacker stole approximately $3 million in BB tokens. The company discovered an authorization flaw that exposed vulnerabilities within the Evmos-based blockchain.

The attack allowed a contract caller to identify another account as the funding source without verifying whether that account approved the transaction. BounceBit halted block production about 40 minutes after detecting the attack, preventing further unauthorized transactions.

The attacker moved approximately 286.5 million BB tokens across nine wallets during the incident. Fortunately, private keys, signatures, wallets, and exchange accounts were not compromised.

BounceBit will issue BB as a BEP-20 token on BNB Chain instead of rebuilding its network. The company plans to use a snapshot taken before the attack to reverse unauthorized transfers and coordinate with exchanges to restore accurate customer balances.