BounceBit retires Layer 1 and reissues BB after 286.5M-token flaw

BounceBit will shut down its standalone Layer 1 and issue BB as a BEP-20 token on BNB Chain. BounceBit attributed the incident to authorization logic inherited from the Evmos stack. The flaw allegedly allowed a caller to name another account as the funding source without approval. BounceBit said private keys, signatures and wallets were not compromised. The snapshot uses block 20,697,260 at 21:02:35 UTC on Aug. 19 as the cutoff. Post-cutoff transactions will not transfer to the new ledger. Addresses holding at least 10 BB will receive equivalent balances automatically at the corresponding BNB Chain address. Balances below 10 BB will be reserved for a later claim portal. Staked and unbonding BB will also qualify. BounceBit has deployed the new contract but has not released its address while exchange due diligence continues. It has not announced the distribution time. Exchange customers must wait for their venues to announce when trading, deposits and withdrawals will resume. BounceBit has not defined replacements for BB's former gas, staking, validator reward and governance roles. The company plans to pursue broader DeFi use on BNB Chain through products including CeDeFi V4, Prime, Strategy, and RWA and Promo vaults. BounceBit also has not explained how BB-Tokens, stBB, vault receipts, rewards or redemption paths will be represented after the old ledger is abandoned.