BounceBit to Shut Down Layer 1 After $3M BB Exploit

BounceBit will shut down its standalone Layer 1 network after an attacker stole roughly $3 million in BB tokens. The company will instead migrate the project to BNB Chain, where most of its products and users already operate. 

The decision follows an authorization flaw that exposed weaknesses within the Evmos-based blockchain. Consequently, BounceBit halted block production about 40 minutes after detecting the attack.

Exploit Forces Major Network Change

The attacker moved about 286.5 million BB tokens across nine wallets during the incident. The vulnerability allowed a contract caller to identify another account as the funding source. However, the system failed to verify whether that account approved the transaction.

Significantly, the attack did not compromise private keys, signatures, wallets, or exchange accounts. Additionally, BounceBit said its CeDeFi, Prime, Promo Vault, and real-world asset products remained secure.

BNB Chain Becomes the New Home

Rather than rebuild the network, BounceBit will issue BB as a BEP-20 token on BNB Chain. It will use a snapshot taken before the attack to reverse unauthorized transfers.

Moreover, the company plans to coordinate with exchanges to restore accurate customer balances. Hence, affected users should avoid bearing losses caused by the exploit.

BounceBit was founded in 2024 with $6 million in raised investment funds. It later expanded into yield products and tokenized real-world assets, in addition to bitcoin restaking. In May, however, Evmos ceased its blockchain venture, leaving reconstruction increasingly difficult.

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