September 20, 2021, | AtoZ Markets–pNetwork, cross-chain decentralized finance (DeFi) platform, has been the victim of the latest cyber attack in the crypto space. The protocol reported the disappearance of around $ 12.7 million in Bitcoin.
The developers offered the hacker a reward of $ 1.5 million to return the funds.
What Happened in pNewtwork?
The developers of the DeFi protocol officially announced the attack on their platform that resulted in the theft of 277 BTC, most of which was stored with it as collateral.
pNetwork is one of many emerging DeFi protocols that ties together different blockchains, thus overcoming the compatibility issues of decentralized technology. Also, allows users to mint pBTC, a wrapped Bitcoin, by depositing Bitcoin in the protocol. pBTC can then be used as a substitute for Bitcoin on any Ethereum Virtual Machine compatible blockchain.
1/N We're sorry to inform the community that an attacker was able to leverage a bug in our codebase and attack pBTC on BSC, stealing 277 BTC (most of its collateral).— pNetwork 🦜 (@pNetworkDeFi) September 19, 2021
The other bridges were not affected. All other funds in the pNetwork are safe.
According to the official statement, the team behind the protocol has already identified the bug that resulted in the security breach and is “working to fix it.” However, he did not elaborate much on the attack.
What Is Defi Technology?
DeFi brings together financial products and decentralized technology and is seen as the real challenge to the existing banking system. Despite the enormous potential, the industry is still in its infancy and even popular protocols are vulnerable.
Just a few weeks ago, DeFi lending and lending protocol Cream Finance deviated from $ 25 million in multiple tokens, mostly AMPs. Other major DeFi hacks include ThorChain’s two consecutive security breaches that consumed a total of $ 15.6 million.