ANKR SAYS NO ONE SHOULD TRADE ABNBC, ONLY LPS CAUGHT OFF GUARD WILL BE COMPENSATED

Last updated: June 19, 2025, 18:34 | Written by: Elizabeth Rossiello

The crypto world is still reeling from the multi-million dollar exploit that hit Ankr, a prominent BNB Chain-based protocol.In the aftermath, Ankr has made a crucial announcement: they are strongly advising against trading aBNBc (Ankr BNB Chain token). See full list on ankr.comThe company has stated firmly that only Liquidity Providers (LPs) who were ""caught off guard"" by the event will be eligible for compensation. Following yesterday s confirmed multi-million dollar exploit, BNB Chain based protocol Ankr took to its company blog on Dec. 2 to relay its next steps to users. The team said it was identifyingThis decision highlights the complex and often unpredictable nature of decentralized finance (DeFi), where security vulnerabilities can have significant repercussions for users.This article dives deep into the Ankr exploit, the implications for aBNBc holders, the details of the compensation plan for eligible LPs, and what this event means for the broader DeFi landscape.We'll explore why Ankr is urging users to avoid trading aBNBc, who exactly qualifies as an LP ""caught off guard,"" and what steps Ankr is taking to mitigate the damage and restore trust in its platform.It's crucial to understand the nuances of this situation to navigate the fallout effectively and make informed decisions about your crypto assets.Navigating these waters requires an understanding of the intricacies of DeFi, specifically in the aftermath of an exploit.

Understanding the Ankr Exploit and its Impact on aBNBc

The Ankr exploit, confirmed on December 2nd, sent shockwaves through the crypto community.While the exact details of the exploit are complex, it's understood to have involved a reentrancy vulnerability, a common type of security flaw in smart contracts that allows attackers to repeatedly withdraw funds before the contract updates its records. The company stated it would be discontinuing aBNBc and aBNBb tokens effective immediately, and that new ankrBNB tokens will be minted and airdropped to affected aBNBc and aBNBb users. Following yesterday's confirmed multi-million dollar exploit, BNB Chain based protocol Ankr took to its company blog on Dec. 2 to relay its next steps to users.TheDeFi investigator BlockSec's monitoring system detected a loss of more than $80 million.This vulnerability allowed malicious actors to mint a significant amount of diluted aBNBc, effectively devaluing the token and disrupting the stability of the Ankr ecosystem.

What is aBNBc? aBNBc is a token representing BNB Chain tokens staked through Ankr's platform. Ankr says no one should trade aBNBc, only LPs 'caught off guard' will be compensated Copy Link. Cointelegraph Subscribe. Collect. Share. WeChat.It allowed users to earn staking rewards while still using their assets in other DeFi applications. The company stated it would be discontinuing aBNBc and aBNBb tokens 'effective immediately,' and that new ankrBNB tokens will be minted and airdropped to affected aBNBc and aBNBb users.The exploit fundamentally compromised the integrity of aBNBc, rendering it effectively worthless for anyone holding it after the attack.

The immediate consequences of the exploit included:

Devaluation of aBNBc: The unauthorized minting of aBNBc led to a massive increase in supply, causing its price to plummet.
Disruption of DeFi Protocols: Many DeFi protocols that supported aBNBc or aBNBb (the Binance Beacon Chain version of aBNBc) as collateral were affected, leading to potential losses for users.
Loss of Trust: The exploit eroded trust in Ankr's platform and security measures, raising concerns about the safety of other DeFi protocols.

Ankr's Response: Discontinuing aBNBc and aBNBb

In response to the exploit, Ankr took decisive action to mitigate the damage.The company announced that it would be discontinuing aBNBc and aBNBb tokens ""effective immediately."" This decision, while drastic, was necessary to prevent further exploitation and stabilize the Ankr ecosystem.They're also minting and airdropping new ankrBNB tokens to affected aBNBc and aBNBb users. Some users speculatively traded diluted aBNBc after the exploit had occurred as well, but the company indicated that these traders won t be included in the protocol s recompense measures stating, we are only able to compensate LP s caught off guard by the event.This move aims to restore value to those who genuinely suffered from the exploit and were using the tokens as intended.

Ankr's plan involves:

Minting new ankrBNB tokens: These new tokens will replace the compromised aBNBc and aBNBb tokens.
Airdropping to affected users: The new ankrBNB tokens will be airdropped to eligible users based on their holdings of aBNBc and aBNBb at the time of the exploit.
Ceasing support for aBNBc and aBNBb: Ankr will no longer support aBNBc and aBNBb tokens, and they should not be traded.

The Importance of Discontinuing Compromised Tokens

Discontinuing the compromised tokens is critical for several reasons:

Preventing further exploitation: The vulnerability that led to the exploit still exists within the aBNBc and aBNBb contracts.Continuing to use these tokens would expose users to further risk.
Maintaining ecosystem stability: The inflated supply of aBNBc distorts the market and makes it difficult to accurately assess the value of other assets in the Ankr ecosystem.
Restoring confidence: By discontinuing the compromised tokens and issuing new ones, Ankr aims to restore confidence in its platform and its ability to manage security risks.

Who Qualifies for Compensation? BTCUSD Bitcoin Ankr says no one should trade aBNBc, only LPs caught off guard will be compensatedThe ""Caught Off Guard"" Clause

Ankr's statement that only LPs ""caught off guard"" will be compensated has sparked considerable debate and confusion within the crypto community.Understanding this clause is crucial for determining whether you are eligible for recompense.

According to Ankr, LPs ""caught off guard"" refers to liquidity providers on decentralized exchanges (DEXs) who were holding aBNBc and aBNBb when the exploit occurred and were unaware of the vulnerability. These are the users who were actively using the tokens as intended and suffered direct losses due to the exploit.The team said it was identifying liquidity providers to decentralized exchanges (DEXs) as well as protocols supporting aBNBc or aBNBb LP.

Who is NOT eligible for compensation?

Speculative traders: Those who purchased diluted aBNBc *after* the exploit was publicly known are not eligible for compensation. Home; NFT News; Todays NFT Drops; Upcoming NFT Drops; Ongoing NFT Projects; Top NFT Projects; Metaverse News; Crypto News; Meta CollectionsAnkr argues that these traders were aware of the risks involved and were essentially gambling on the token's recovery. Trusted News Discovery Since 2025. Global Edition. Saturday, AugWe understand diluted aBNBc was speculatively traded after the exploit occurred, but we are only able to compensate LP s caught off guard by the event.
Those who sold aBNBc before the exploit was announced: If you sold your aBNBc before the exploit was publicly disclosed, you did not suffer direct losses due to the vulnerability and are therefore not eligible for compensation.

Determining Eligibility: A Complex Process

Determining who qualifies as an LP ""caught off guard"" is a complex process that likely involves analyzing on-chain data to track aBNBc and aBNBb holdings and trading activity. Ankr says no one should trade aBNBc, only LPs caught off guard will be compensatedAnkr will need to identify the addresses of liquidity providers on various DEXs and assess their trading history to determine whether they were aware of the exploit before it became public.This involves identifying liquidity providers to decentralized exchanges as well as protocols supporting aBNBc or aBNBb LP.

What evidence might Ankr use to determine eligibility?

On-chain transaction data: Analyzing transaction histories to determine when aBNBc was purchased and sold.
DEX data: Examining liquidity provider records on decentralized exchanges.
Public announcements: Considering the timing of public announcements about the exploit to determine when users were likely to have become aware of the vulnerability.

Why Ankr Urges Against Trading aBNBc

Ankr's strong recommendation against trading aBNBc stems from several factors. Some users speculatively traded diluted aBNBc after the exploit had occurred as well, but the company indicated that these traders won t be included in the protocol s recompense measures stating, we are only able to compensate LP s caught off guard by the event. Update on our aBNB Token Exploit:The primary reason is that the token is essentially worthless. BTCUSD Bitcoin Ankr says no one should trade aBNBc, only LPs caught off guard will be compensated The company stated it would be discontinuing aBNBc and aBNBb tokens 'effective immediately,' and that 'new ankrBNB tokens will be minted and airdropped to affected aBNBc and aBNBb users.'The exploit resulted in a massive inflation of the aBNBc supply, rendering the token practically devoid of value. Ankr says no one should trade aBNBc, only LPs ''caught off guard'' will be compensated The company stated it would be discontinuing aBNBc and aBNBb tokens effective immediately, and that . Orbit Chain Offers Multi-Million Dollar Bounty to the Public After Suffering $81,000,000 Hack Last.It's more likely that someone is going to be exploited in the act of trading the token than it is that they will make money.Trading aBNBc carries significant risks.

Furthermore, trading aBNBc could potentially complicate the compensation process.Ankr needs to establish a clear snapshot of aBNBc and aBNBb holdings at the time of the exploit to accurately distribute the new ankrBNB tokens. The company stated it would be discontinuing aBNBc and aBNBb tokens 'effective immediately,' and that 'new ankrBNB tokens will beContinued trading of aBNBc could make it more difficult to track ownership and ensure fair compensation.

Finally, trading aBNBc could be seen as exploitative. [ad_1]Following yesterday's confirmed multi-million dollar exploit, BNB Chain based protocol Ankr took to its company blog on Dec. 2 to relay its next steps to users.The team said it was identifying liquidity providers to decentralized exchanges asBy purchasing aBNBc after the exploit, traders are potentially profiting from the misfortune of others who were genuinely affected by the vulnerability.This creates an unethical scenario that Ankr wants to discourage.

The Ethical Considerations of Trading Exploited Tokens

The issue of trading tokens after an exploit raises important ethical considerations within the crypto community.While some argue that it's simply a matter of supply and demand, others view it as unethical to profit from the misfortune of others.

Arguments against trading exploited tokens:

Profiting from misfortune: Trading exploited tokens can be seen as taking advantage of the vulnerability and the losses suffered by legitimate users.
Encouraging unethical behavior: Trading exploited tokens could incentivize malicious actors to launch future attacks, knowing that they can profit from the resulting chaos.
Complicating recovery efforts: Continued trading of exploited tokens can complicate the process of distributing compensation and restoring stability to the affected ecosystem.

Arguments for trading exploited tokens:

Market efficiency: Some argue that trading exploited tokens is simply a function of market efficiency, allowing for price discovery and potential recovery.
Opportunity for profit: Traders may believe that they can profit from the volatility surrounding exploited tokens, even if it involves risk.
Supporting liquidity: Trading exploited tokens can provide liquidity to those who need to exit their positions, even at a loss.

Ultimately, the decision of whether or not to trade exploited tokens is a personal one that depends on individual ethical values and risk tolerance. Following yesterday's confirmed multi-million dollar exploit, BNB Chain based protocol Ankr took to its company blog on Dec. 2 to relay its next steps to users. The team said it was identifyingHowever, it's important to be aware of the potential consequences of such actions and to consider the impact on the broader crypto community.

Ankr's Long-Term Strategy for Recovery

While compensating affected LPs and discontinuing aBNBc are crucial steps in the short term, Ankr's long-term recovery depends on restoring trust in its platform and preventing future exploits.This requires a multi-faceted approach that includes:

Enhanced security measures: Implementing more robust security protocols and conducting regular audits to identify and address potential vulnerabilities.
Improved smart contract development practices: Adopting best practices for smart contract development to minimize the risk of reentrancy vulnerabilities and other common security flaws.
Increased transparency: Providing greater transparency about its security measures and incident response procedures.
Community engagement: Actively engaging with the community to address concerns and rebuild trust.

Investing in Security Audits and Bug Bounty Programs

One of the most effective ways to prevent future exploits is to invest in regular security audits and bug bounty programs.Security audits involve having independent experts review the codebase of smart contracts to identify potential vulnerabilities. Ankr says no one should trade aBNBc, only LPs caught off guard will be compensated Decem 0:03Bug bounty programs incentivize white hat hackers to find and report vulnerabilities in exchange for a reward.

These measures can help to:

Identify vulnerabilities before they are exploited: Security audits and bug bounty programs can uncover vulnerabilities that might otherwise go unnoticed.
Improve code quality: The feedback from security audits and bug bounty programs can help developers improve the quality of their code and reduce the risk of future vulnerabilities.
Build trust with the community: Demonstrating a commitment to security by investing in audits and bug bounty programs can help to rebuild trust with the community. Ankr says no one should trade aBNBc, only LPs 'caught off guard' will be compensated Deutschland Nachrichten NachrichtenOrbit Chain Offers Multi-Million Dollar Bounty to the Public After Suffering $81,000,000 Hack Last.

Lessons Learned and Moving Forward in DeFi Security

The Ankr exploit serves as a stark reminder of the risks inherent in DeFi and the importance of robust security measures. DeFi investigator BlockSec s monitoring system detected a loss of more than $80 million citing the root cause as a typical reentrancy vulnerability.It highlights the need for:

Thorough code audits: DeFi protocols must prioritize thorough code audits by reputable security firms before launching their platforms.
Effective risk management: Users should carefully assess the risks involved in participating in DeFi protocols and diversify their holdings accordingly.
Community vigilance: The crypto community must remain vigilant and report any potential vulnerabilities to the relevant protocols.
Improved insurance solutions: The DeFi industry needs to develop more comprehensive insurance solutions to protect users against the financial impact of exploits.

The Future of DeFi Security

The future of DeFi security will likely involve a combination of technological advancements, improved governance practices, and increased user awareness.Some potential developments include:

Formal verification: Using mathematical techniques to formally verify the correctness of smart contracts.
Decentralized insurance protocols: Creating decentralized insurance protocols that allow users to pool their resources and protect themselves against losses from exploits.
Reputation systems: Developing reputation systems that track the security track record of DeFi protocols and developers.
Education and awareness: Educating users about the risks of DeFi and providing them with the tools and knowledge they need to make informed decisions.

Conclusion: Navigating the Aftermath of the Ankr Exploit

The Ankr exploit and the subsequent decision to discontinue aBNBc and aBNBb tokens represent a significant event in the DeFi space. 4.6K subscribers in the Ankr community. Official subreddit for Ankr Staking Welcome to the Ankr Staking Community! We are glad to see you here!Ankr's advice is clear: no one should trade aBNBc. Following yesterday's confirmed multi-million dollar exploit, BNB Chain based protocol Ankr took to its company blog on Dec. 2 to Ankr says no one should trade aBNBc, only LPs 'caught off guard' will be compensatedThe focus is now on compensating LPs ""caught off guard"" and restoring trust in the Ankr ecosystem. Following yesterday's confirmed multi-million dollar exploit, BNB Chain based protocol Ankr took to its company blog on Dec. 2 to relay its next steps to users. The team said it was identifying liquidity providers to decentralized exchanges as well as protocols supporting aBNBc or aBNBb LP.This situation underscores the importance of understanding the risks associated with DeFi, conducting thorough research before investing in crypto assets, and staying informed about security vulnerabilities.While the compensation process may be complex, it's a crucial step towards mitigating the damage and rebuilding confidence in the platform.

Key takeaways from this situation include:

aBNBc and aBNBb are discontinued and should not be traded.
Only LPs ""caught off guard"" by the exploit will be eligible for compensation.
Ankr is taking steps to mint and airdrop new ankrBNB tokens to affected users.
The Ankr exploit highlights the importance of security audits, risk management, and community vigilance in DeFi.

As the DeFi landscape continues to evolve, it's essential to stay informed, exercise caution, and prioritize security.This event should serve as a learning experience for the entire crypto community, emphasizing the need for continuous improvement in security practices and a commitment to protecting users' assets. We understand diluted aBNBc was speculatively traded after the exploit occurred, but we are only able to compensate LP s caught off guard by the event. We are discontinuing aBNBc and aBNBb tokens effective immediately, and new ankrBNB tokens will be minted and airdropped to affected aBNBc and aBNBb users.The community should also pay attention to the Orbit Chain hack, where a multi-million dollar bounty has been offered, as security is a critical focus in the Defi space.

Call to Action: If you were an aBNBc or aBNBb liquidity provider, carefully review Ankr's compensation guidelines on their official website and follow their instructions for claiming your new ankrBNB tokens.Stay vigilant and continue to educate yourself about DeFi security best practices.