The Binance exchange has stated that it is not responsible for the hacks and vulnerabilities of the DeFi protocols on the Binance Smart Chain blockchain, and cannot carry out “kickbacks” and return the stolen money.
Decentralized Finance (DeFi) protocols on the Binance Smart Chain (BSC) blockchain are undergoing more and more hacks. In May, the PancakeBunny DeFi protocol was hacked with instant loans, as a result of which the attackers withdrew $ 200 million worth of crypto assets.Another DeFi protocol was previously attacked on the BSC blockchain – hackers removed $ 11 million worth of tokens from the bEarn Fi farming protocol.
As a Binance spokesman said, the situation is now emerging in the decentralized finance industry, and the exchange can do little to eliminate the consequences of protocol hacks. As a reminder, according to researchers, Binance retains a significant degree of control over BSC, making it much more centralized than competing blockchains.
“BSC is a public infrastructure that is not controlled by anyone, so anyone can launch projects there,” said Samy Karim, Business and Ecosystem Development Coordinator at Binance. “Attackers, hacks and vulnerabilities in DeFi are not new, and this situation is definitely not unique to BSC.”
Binance Chain developers launched the BSC mainnet with BNB staking and DeFi app development last September. In less than nine months, the BSC blockchain has grown significantly to become one of Ethereum’s most formidable competitors. At the end of April, the number of transactions in BSC was five times higher than that of the Ethereum network, due to the increase in activity on the PancakeSwap exchange.
After several hacks of DeFi protocols on BSC, Twitter users criticized Binance CEO Changpeng Zhao and demanded that the exchange take responsibility for the application vulnerabilities. When asked if the BSC blockchain could become more decentralized in the future, Karim said:
“Our approach is more focused on educating and supporting the developer ecosystem.”
However, Karim said he noticed “significant interest” from institutional investors in BSC and DeFi, and that his team will focus on fulfilling their requests, such as the privacy of transactions. Organizations, he said, “require private pools, private credit pools, or money markets to ensure the privacy of transactions, which have different functions from what you see today.”