A significant amount of “Wrapped” Bitcoin, valued at over $12 million, has been stolen from the decentralized finance protocol pNetwork. The project disclosed the theft of 277 BTC on September 19, attributing the hack to a vulnerability in the codebase.
The theft took place on the Binance Smart Chain, the same blockchain involved in the largest DeFi heist in history – the $610 million Poly Network hack in August. pNetwork operates across various blockchains, including Ethereum, xDAI, EOS, Polygon, Binance Smart Chain, Telos, and Ultra. Wrapped tokens play a crucial role in enhancing interoperability between different blockchains by enabling the transfer of assets from one blockchain to another.
pNetwork acknowledged the bug in their codebase that allowed the attacker to steal a significant portion of pBTC collateral on BSC. Despite the breach, the platform assured the community that other bridges were not affected, and all remaining funds in the pNetwork were secure.
In an attempt to recover the stolen funds, pNetwork publicly offered the attacker a 12.5% bounty of their illicit gains. They also extended a $1.5 million bounty to the hacker for returning the funds, emphasizing the importance of maintaining the integrity of the DeFi ecosystem.
Acknowledging the prevalence of vulnerabilities in the DeFi space, pNetwork emphasized the need for continued growth and security within the ecosystem. The platform is conducting a thorough investigation, described as a “detailed post-mortem,” to identify the root cause of the breach and implement necessary security measures.
While the Telos and EOS bridges have been safely restored with additional security measures, pNetwork continues to review and enhance the security of all its bridges. The pUOS on Ultra bridge was confirmed to be unaffected and is now operational. Updates on the gradual reactivation of the remaining bridges will be provided in the following days.
pNetwork remains committed to prioritizing security over speed and ensuring the safety of user funds across its network. Stay tuned for further updates on the ongoing investigation and security enhancements within the pNetwork ecosystem.