XLink Bitcoin Bridge Resumes After $10M Hack Recovery

As a researcher with experience in blockchain security, I find the XLink bridge incident deeply concerning. Having closely followed the developments surrounding this breach, I can’t help but be alarmed by the ease with which the hacker managed to compromise XLink’s Ethereum and BSC endpoints, resulting in a significant financial loss.


I, as an analyst, can report that XLink, the Bitcoin blockchain bridge, will restart following its unexpected halt on May 15 due to a significant cyberattack. The intrusion targeted XLink’s Ethereum and Binance Smart Chain (BSC) interfaces, resulting in a substantial financial loss of approximately $10 million. This information was made public by the XLink team on May 15.

As a crypto investor, I’d like to share an update regarding the XLink Bridge incident: Last week, we discovered a security breach affecting certain endpoints on both Ethereum and BNB networks. In response, our dedicated team immediately took action to seal off the vulnerability and prevent further damage.— XLink.btc – Bridges All Bitcoin Layer 2s (@XLinkbtc) May 15, 2024

A hacker employed a phishing tactic to obtain private keys, thereby gaining authority over the BSC and Ethereum interfaces and extracting $4.3 million worth of assets. However, a white hat hacker managed to recover some of the stolen funds, amounting to approximately $5 million on BSC. Regrettably, around $5 million, primarily in LunarCrush tokens, remains trapped within the Ethereum blockchain. The LunarCrush team and XLink are diligently collaborating to safeguard these assets, having successfully recovered or secured a significant portion of them. Approximately $500,000 in cryptocurrency remnants continue to be held captive on Ethereum.

After the hack, XLink temporarily halted bridge operations for a comprehensive examination. This probe involved collaboration with their security allies, such as Ancilia, and representatives from Binance.

XLink recommends that users who have engaged with affected contracts take action by canceling any pre-approved spending limits. Detailed guidelines and relevant links are provided below for Ethereum (ETH) and Binance Smart Chain (BSC) users to minimize potential risks.

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2024-05-17 13:56