The cryptocurrency community witnessed a significant event as the BNB Smart Chain exploit took an unexpected turn. A crypto wallet, previously connected to the exploit, found itself facing liquidation due to the sharp decline in BNB’s price. This development comes amidst a broader market pullback that saw many traders facing challenges. Let’s delve into the details and implications of this event.
The BNB Smart Chain Exploit and Liquidation
On October 6, the cross-chain bridge of the BNB Smart Chain network was compromised, allowing hackers to seize a staggering 2 million BNB tokens, valued at approximately $568 million at the time. This event sent shockwaves through the cryptocurrency community.
Fast forward to August 18, and a crypto wallet linked to the exploit faced a significant setback. The collateral, amounting to over $53 million, was liquidated on the Venus Protocol crypto lending platform.
PeckShield, a blockchain security firm, revealed these developments, further shedding light on the actions of the hacker. The stolen tokens were employed as collateral for a substantial 30-million-Tether loan on the protocol.
BNB Smart Chain Hackers Caught in the Market Turmoil
August 18 marked a tumultuous day for the entire crypto market, witnessing a notable 6% decline. This downward trend further led to the overall market capitalization plummeting to $1.1 trillion, as per data from various coin information sources. Within the span of 24 hours, more than $1 billion in crypto positions were wiped out, reflecting the severity of the market shakeup.
Furthermore, the hackers behind the BNB Smart Chain exploit were not immune to the market’s volatility. The price of BNB dipped below the $220 mark, prompting automated liquidation of three positions connected to the compromised wallet. This automated action further underscored the ripple effects of the market crash.
Strategies Amidst the Crisis
While the market turbulence led to losses for many, some managed to navigate the storm more effectively.
A notable instance was observed when a crypto whale strategically sold 22,341 Ether, valued at around $41 million, just before the crash. This maneuver helped the trader avoid a potential loss exceeding $5 million in value. Despite this shrewd move, the trader still incurred a loss of approximately $1.7 million.
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