An unidentified individual had managed to penetrate Allbridge’s bridge and extracted digital assets worth $573,000.
However, the perpetrator was willing to give back the majority of the funds to the initiative. The developers received 1,500 BNB (approximately $465,000) from an anonymous donor, which were returned on April 3rd.
The remaining portion of the funds, which still resided with the hacker, would be considered a “discovery of a security loophole” reward, and the hacker will not be pursued by the authorities.
The Allbridge team, after receiving the BNB, exchanged them for Binance USD stablecoins, which were then used to reimburse the victims of the hack.
An unknown attacker had discovered a vulnerability in the BNB Chain pool on April 1, enabling them to function as a liquidity provider and manipulate the asset’s value.
Following the security breach, the Allbridge initiative offered a prize to hackers who discovered the security flaw.
The precise amount of losses sustained in the attack was not disclosed, although Peckshield estimated that the perpetrator had withdrawn $828,889 in BUSD and $290,868 in Tether stablecoins.
On April 2, the Binance BNB Chain developers revealed that they had identified at least one of the hackers.
After being identified, the perpetrator agreed to return the majority of the stolen assets. Recently, the Euler Finance DeFi protocol was also breached, with the hackers returning the pilfered funds to the developers.