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

Blockchain

The sudden market pullback in the crypto space liquidated many traders and, according to data shown on the blockchain, the attackers responsible for the infamous BNB Smart Chain exploit, which led to 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 make off with 2 million BNB tokens, which were worth around $568 million at the time of the theft.

On Aug. 18, a crypto wallet linked to the exploit had its collateral, worth more than $53 million, liquidated on the crypto lending platform Venus Protocol, according to blockchain security firm PeckShield. The hacker apparently used the tokens as collateral for a 30-million-Tether (USDT) loan on the protocol.

Transaction showing that the BNB exploiter was liquidated. Source: PeckShield

On Aug. 18, the entire crypto market suffered a 6% drop, sending the overall market capitalization to $1.1 trillion, according to coin information sites. The event wiped out over $1 billion in crypto positions in the last 24 hours according to market data tracker CoinGlass. 

The BNB Smart chain hackers were also affected, as the price of BNB dropped below $220. According to blockchain data, three positions linked to the wallet were automatically liquidated after the price fell. At the moment, BNB is trading at $218 per token.

Related: Liquid staking claims top spot in DeFi: Binance report

While many suffered losses as a result of the massive drop in the market, some were able to minimize the damage. Days before the crash, a crypto whale sold 22,341 Ether (ETH), worth around $41 million, and avoided a potential loss of over $5 million in value. Despite this, the crypto trader still lost around $1.7 million in the trade.

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