BounceBit Shuts Down Layer 1 Blockchain After $3.3 Million Exploit

BounceBit is permanently retiring its Layer 1 blockchain after an attacker exploited a protocol-level flaw to move approximately 286.5 million BB tokens, worth around $3.3 million. The project will migrate BB to BNB Chain as holders and exchanges prepare for the transition.

What Went Wrong

The exploit involved nine mainnet accounts and did not compromise user wallets or private keys, according to BounceBit. Instead, an attacker took advantage of an authorization flaw within the project’s Evmos-based chain, though technical details of the vulnerability have not been disclosed. In response, BounceBit halted block production rather than attempt to rebuild the affected network. Its CeDeFi, Prime, and RWA products remain unaffected and continue operating normally.

How the Migration Will Work

BB will be reissued on BNB Chain as a BEP-20 token, using a snapshot of balances recorded before the exploit occurred. This means the 286.5 million BB moved by the attacker will not carry over to the new supply. BounceBit has warned users to avoid unofficial migration links and fraudulent token contracts as exchanges coordinate deposit and withdrawal support for the new token.

What This Means for Traders

Since exchange migration timelines may vary, BB liquidity and price volatility could be affected during the transition period. BounceBit has not issued any forecast for BB’s price or trading volume following the move.