BounceBit Shuts Down Layer 1 Blockchain After $3M Token Heist

BounceBit's Layer 1 blockchain is shutting down after an attacker exploited an authorization flaw to steal $3 million worth of its BB token. The vulnerability allowed the attacker to move tokens from nine mainnet accounts without compromising any private keys.

The attack occurred on August 19-20, with the attacker running 14 unauthorized transactions using two accounts and 15 single-use contracts. Block production halted at height 20,702,857 at 02:36:37 UTC on August 20.

BounceBit initially planned to patch its network but later decided to permanently retire the Layer 1 chain due to the difficulty of rebuilding it from a discontinued foundation. Most of BounceBit's products and users already operate on BNB Chain, making migration there more sensible than rebuilding.