{"id":9474,"date":"2026-08-21T22:09:22","date_gmt":"2026-08-21T19:09:22","guid":{"rendered":"https:\/\/handoli.com\/index.php\/2026\/08\/21\/yzi-labs-backed-bouncebit-chain-shuts-down-after-3m-exploit\/"},"modified":"2026-08-21T22:09:22","modified_gmt":"2026-08-21T19:09:22","slug":"yzi-labs-backed-bouncebit-chain-shuts-down-after-3m-exploit","status":"publish","type":"post","link":"https:\/\/handoli.com\/index.php\/2026\/08\/21\/yzi-labs-backed-bouncebit-chain-shuts-down-after-3m-exploit\/","title":{"rendered":"YZi Labs-backed BounceBit Chain shuts down after $3M exploit"},"content":{"rendered":"
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The YZi-backed bitcoin restaking firm BounceBit announced today that it is shutting down its blockchain after hackers exploited an authorization vulnerability and stole over $3.1 million of its BB token.\u00a0<\/p>\n

BounceBit claims<\/a> that between August 19 and August 20, attackers were able to move 286 million BB tokens out of nine of BounceBit Chain\u2019s wallets without authorization.\u00a0<\/p>\n

Evmos stack caused exploit<\/h2>\n

An authorization flaw in the vesting and lockup account module hosted by Evmos, and utilized by BounceBit Chain, seemingly led to the exploit.\u00a0<\/p>\n

BounceBit says the attacker sent an estimated 254 million BB tokens to one \u201cmajor\u201d crypto exchange, almost 10 million BB tokens to another exchange, and 18.5 million BB tokens remain sitting in a consolidated address.<\/p>\n

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We have identified an issue affecting BounceBit Chain and have paused nodes out of caution while we deploy a fix. BB transactions are temporarily unavailable.<\/p>\n

This is limited to the chain itself, the CeDeFi app is not affected, and neither are smart contracts or vaults.<\/p>\n

No\u2026<\/p>\n

\u2014 BounceBit (@bouncebit) August 20, 2026<\/a><\/p><\/blockquote>\n<\/div>

BounceBit flagging the exploit one day before the firm sunsets. <\/figcaption><\/figure>\n

Read more: Aave TVL still down 43% since KelpDAO hack<\/a><\/em><\/p>\n

BounceBit rules out network upgrade<\/h2>\n

BounceBit claims that it is sunsetting its blockchain after a technical review and will not be able to implement a network upgrade since it is built on the already discontinued Evmos infrastructure.\u00a0<\/p>\n

It said, \u201cMoving our fork onto a successor codebase would therefore not be a conventional upgrade, but a substantial re-platform requiring a full rebuild, re-audit, and revalidation before it could safely carry user assets again.\u201d<\/p>\n

BB tokens will now turn into BEP-20 tokens<\/h2>\n

Every other BB token, bar the attackers, will be reissued as a BEP-20 token on BNB Chain. A snapshot of the block before the exploit will be used to determine the sum of BEP-20 tokens a user will receive. <\/p>\n

BounceBit also claims it has asked crypto exchanges to freeze specific addresses that won\u2019t affect the funds of innocent users.\u00a0\u00a0\u00a0<\/p>\n

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Fourth crypto exchange shuts down in just six weeks<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Read more: Tone Vays says his PC looks \u2018OK\u2019 after giving hackers access<\/a><\/em><\/p>\n

BB token holders were told that they won\u2019t need to do anything and that they should be cautious of scammers offering help.\u00a0<\/p>\n

BounceBit raised<\/a> $6 million in 2024 as part of a seed funding round co-led by Blockchain Capital and Breyer Capital. According to the Binance Square moderator \u201cTang Hua,\u201d YZi Labs invested<\/a> later in April 2024.\u00a0<\/p>\n

Got a tip? Send us an email securely via\u00a0Protos Leaks<\/em><\/a>. For more informed news and investigations, follow us on\u00a0X<\/a>,\u00a0Bluesky<\/em><\/a>, and\u00a0Google News<\/em><\/a>, or subscribe to our\u00a0YouTube<\/em><\/a>\u00a0channel.<\/em><\/p>\n

The post YZi Labs-backed BounceBit Chain shuts down after $3M exploit<\/a> appeared first on Protos<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The YZi-backed bitcoin restaking firm BounceBit announced today that it is shutting down its blockchain after hackers exploited an authorization vulnerability and stole over $3.1 million of its BB token.\u00a0 BounceBit claims that between August 19 and August 20, attackers were able to move 286 million BB tokens out of nine of BounceBit Chain\u2019s wallets […]<\/p>\n","protected":false},"author":1,"featured_media":9475,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[147],"tags":[],"class_list":["post-9474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-invest"],"_links":{"self":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/posts\/9474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/comments?post=9474"}],"version-history":[{"count":0,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/posts\/9474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/media\/9475"}],"wp:attachment":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/media?parent=9474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/categories?post=9474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/tags?post=9474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}