BNB's Bold Move: Eliminating Hacked USDT and USDC Holdings
Date: 2023-12-17 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
BNB Chain Core's Strategic Plan:
The BNB Chain Core team has unveiled a strategic plan one year after the BNB Bridge hack, aimed at confiscating the hacker's collateralized assets and using them to repay debts, avoiding the need for BNB market liquidation. As of December 11, 2023, the hacker held 630,240 BNB, along with debts totaling $58,440,000 and $37,440,000.
Debt Repayment and Proposal:
The proposal suggests prioritizing debt repayment to unlock the BNB proposal. To achieve this, a mechanism for forced liquidation will be implemented, granting BNB Chain the authority to carry out necessary operations.
Five Key Steps:
The BNB Chain Core team outlined five crucial steps to implement the proposal. The first step involves allowing the forced liquidation of the hacker's position, leading to the liquidation of 100% of USDT and USDC holdings. All remaining BNB assets post-liquidation will be confiscated.
XVS Token Confiscation:
The hacker had also accumulated 128,666.39 XVS tokens, which will be confiscated and sent to the Venus treasury.
Covering Liquidation Fees and Shortfalls:
Liquidation fees earned during the process will be used to repay any outstanding debt. If the remaining amount is insufficient to cover the total shortfall, Venus will tap into its risk fund.
Background on the Exploit:
The exploit occurred in October 2022 and temporarily halted the BNB smart network (BSC). The hacker managed to secure $566 million in BNB, with $137 million successfully transferred to other networks. The attacker targeted Venus, using 900,000 BNB as collateral for loans in various stablecoins, including USDT and USDC.
