BounceBit Token Holders Protected by Blockchain Shutdown Process

A blockchain shutdown is not necessarily the end for token holders. When a chain is shut down, tokens are often reissued on another chain, preserving balances at a fixed point in time known as the snapshot.

This was demonstrated by the case of BounceBit, which halted its own layer 1 blockchain due to an authorization flaw exploited by an attacker. The operators chose to close the chain and reissue the token on BNB Chain rather than patching the vulnerability.

The snapshot for BounceBit was set at block number 20,697,260, immediately before the first unauthorized transaction. This means that tokens held in staking positions or in unbonding periods will also be transferred to the new chain.