BNB hacker loses over $53M after getting liquidated in market crash

The unexpected market pullback in the crypto area liquidated numerous traders and, according to data shown on the blockchain, the aggressors responsible for the infamous BNB Smart Chain make use of, which caused the theft of almost $600 million worth of BNB (BNB) tokens. On Oct. 6, the cross-chain bridge by blockchain network BNB Smart Chain was suspended because of an exploit that allowed the hackers to swipe 2 million BNB tokens, which were worth around $568 million at the time of the theft. On Aug. 18, a crypto wallet connected to the make use of had its collateral, worth more than $53 million, liquidated on the crypto financing platform Venus Protocol, according to blockchain security company PeckShield. The hacker obviously used the tokens as security for a 30-million-Tether (USDT) loan on the procedure. Deal revealing that the BNB exploiter was liquidated. Source: PeckShieldOn Aug. 18, the whole crypto market suffered a 6% drop, sending the overall market capitalization to $1.1 trillion, according to coin details websites. The occasion cleaned out over $1 billion in crypto positions in the last 24 hours according to market data tracker CoinGlass. The BNB Smart chain hackers were likewise impacted, as the price of BNB dropped listed below $220. According to blockchain data, 3 positions connected to the wallet were automatically liquidated after the price fell. At the minute, BNB is trading at $218 per token. Related: Liquid staking claims leading spot in DeFi: Binance reportWhile numerous suffered losses as a result of the enormous drop in the marketplace, some had the ability to reduce the damage. Days prior to the crash, a crypto whale sold 22,341 Ether (ETH), worth around $41 million, and avoided a prospective loss of over $5 million in value. Regardless of this, the crypto trader still lost around $1.7 million in the trade. Gather this short article as an NFT to preserve this minute in history and reveal your assistance for independent journalism in the crypto space.Magazine: Should we ban ransomware payments? Its a appealing but hazardous idea

Other Questions People Ask

What led to the BNB hacker losing over $53M after getting liquidated in the market crash?

The BNB hacker lost over $53 million due to a significant market downturn that occurred on August 18, which saw the entire crypto market drop by 6%. This decline triggered automatic liquidations of positions held by the hacker, who had used stolen BNB tokens as collateral for a loan on the Venus Protocol. As the price of BNB fell below $220, three positions linked to the hacker's wallet were liquidated, resulting in substantial financial losses.

How did the BNB hacker's liquidation impact the overall crypto market?

The liquidation of the BNB hacker's positions contributed to a broader market sell-off, which wiped out over $1 billion in crypto positions within 24 hours. The incident highlighted the vulnerability of leveraged positions during market volatility, as many traders faced similar liquidations. The overall market capitalization fell to $1.1 trillion, reflecting widespread panic and loss among investors.

What was the significance of the BNB Smart Chain exploit related to the hacker's losses?

The BNB Smart Chain exploit was significant as it allowed hackers to steal approximately 2 million BNB tokens, valued at around $568 million at the time. This theft not only impacted the hacker's ability to maintain their positions but also raised concerns about security within the blockchain network. The subsequent liquidation of over $53 million in collateral further emphasized the risks associated with using stolen assets in leveraged trading.

What actions did other traders take in response to the market crash affecting the BNB hacker?

In response to the market crash, some traders managed to mitigate their losses by making strategic moves before the downturn. For instance, a crypto whale sold 22,341 Ether (ETH) just days prior, avoiding a potential loss of over $5 million. This highlights the importance of market awareness and timely decision-making in minimizing financial damage during volatile periods.

What lessons can be learned from the BNB hacker's liquidation during the market crash?

The liquidation of the BNB hacker serves as a cautionary tale about the risks of leveraging assets, especially in a volatile market. It underscores the importance of risk management strategies and understanding market dynamics before engaging in high-stakes trading. Additionally, it highlights the need for robust security measures within blockchain networks to prevent exploits that can lead to significant financial losses.