BXH protocol encounters a major security incident, multiple Smart Pool projects are affected.

Recently, a major security incident shocked the cryptocurrency world. The decentralized yield protocol BXH suffered a private key leak on the BSC chain, resulting in approximately $139 million in crypto assets being stolen. Although assets on Ethereum, OEC, and Heco chains have not yet been affected, the protocol has suspended all deposit and withdrawal functions on all chains.

Security agency analysis shows that attackers gained administrative privileges and transferred a large amount of assets from the BXH vault. Currently, some of the stolen funds have been transferred to other chains or exchanged for other cryptocurrencies.

This incident has raised widespread doubts, with people questioning why BXH would hand over fund management authority to the attacker. Some believe there may be internal personnel involved. In response, BXH officials stated that they are investigating and are offering a reward of $1 million for technical support to recover the funds.

What is even more concerning is that this incident has also affected multiple Smart Pool projects that rely on BXH. Among them, the Coinwind project, ranked second on the Heco chain, is the most affected, with associated funds reaching as high as $150 million. The Coinwind team stated that they are closely monitoring the situation and are working hard to find a solution.

This event exposes the potential risks present in the current Smart Pool model. Such projects typically amplify returns by frequently operating between different lending protocols, but this also increases risks. Any issue at any link could lead to the collapse of the entire investment chain.

Industry insiders urge that the Smart Pool project should enhance transparency, disclosing the direction of every fund and investment strategy, allowing users to fully understand the risks. At the same time, there are opinions suggesting that the Smart Pool should develop towards more professional financial products in the future, rather than solely relying on a simple circular borrowing model.

This incident serves as a reminder for investors to carefully assess risks when participating in any cryptocurrency project, especially those involving complex investment strategies. At the same time, it highlights the importance of strengthening industry security standards and improving project transparency.