BounceBit Chain Shuts Down Following $3.1M Exploit, Migrates to BNB Chain

BounceBit, a bitcoin restaking firm backed by YZi Labs, is shutting down its layer-1 blockchain following a critical exploit that resulted in the theft of approximately 286 million BB tokens, valued at over $3.1 million. The exploit occurred between August 19 and 20, 2026, due to an authorization vulnerability within the Evmos infrastructure used by BounceBit Chain.

During the attack, tokens were moved from nine wallets without authorization, with a significant portion sent to major cryptocurrency exchanges. In response, BounceBit halted block production and contacted exchanges to freeze affected assets while investigations were underway.

After a technical review, BounceBit determined that it could not implement a network upgrade on the existing infrastructure, leading to the decision to permanently shut down the chain. Instead, BB tokens will be reissued as BEP-20 tokens on the BNB Chain, based on a snapshot taken just before the exploit. This new issuance will exclude the stolen tokens, effectively nullifying the attacker's gains.

Users will not need to take any action, as the transition to the new token standard will be handled automatically, including the restoration of staked positions. The CeDeFi applications associated with BounceBit reportedly remained unaffected by the exploit.