YZi Labs-backed BounceBit has announced plans to permanently cease its BounceBit Chain. Instead of repairing the network, BounceBit plans to redeem BB as a BEP-20 token on BNB Chain.
This comes after a recent attack in which the wrongdoer misused a flaw in one of BounceBit Chain’s built-in protocol modules. This allowed the attacker to move BB tokens from nine ordinary mainnet accounts without getting permission from the account owners.
BB compromised
The attacker moved approximately 286.5 million BB through 14 transactions over roughly five hours. The protocol failed to verify whether the debited account had authorized each transaction.
As a result, the attacker could name another account as the funding source and transfer its BB without permission.
BounceBit halted the blockchain to contain the exploit. No further unauthorized transfers occurred afterward.
However, the vulnerability exposed a deeper problem than one defective module.
The main driver of the attack
Now, talking about the reason behind the complete shutdown is that BounceBit Chain was built on the Evmos stack, which included a vesting and lockup module.
For those unaware, Evmos itself has been discontinued. Therefore, simply doing the patchwork to fix the vulnerability and restart the network was not sufficient to avoid further such attacks.
Moving 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.
That said, BounceBit has many of its products already operating on BNB Chain, where user activity is increasingly concentrated. By relocating BB there, the project will have much more things to offer including “mature security, deeper liquidity, and wallet support.”
So rather than spending significant resources rebuilding its own Layer 1, BounceBit believes it is safer and more efficient to consolidate around BNB Chain.
Is BounceBit the first exchange to shut down?
As of now, BounceBit has asked exchanges to freeze relevant funds while avoiding blanket freezes that could affect innocent users. Additionally, they also plan to restore user balances using the pre-attack snapshot, instead of depending on recovering the stolen tokens.
Well, this isn’t the first exchange that has been shut down. According to AMBCrypto’s recent report, about nine exchanges and trading platforms have been shut down in 2026. But interestingly, it is the lowest annual count in at least eight years.
Final Summary
- In the BounceBit attack, BB tokens from nine ordinary mainnet accounts were moved without permission.
- The exchange has planned to relocate its BB on the BNB Chain, where there is increased concentration of user activity.