- Binance has frozen over $5.3 million in stolen funds linked to a $54 million hack of the Turkish cryptocurrency exchange BtcTurk.
- The exchange is actively assisting in the investigation, with its security teams working to protect the crypto ecosystem.
In a swift and decisive move, Binance has frozen over $5.3 million in stolen funds linked to the recent breach of the Turkish cryptocurrency exchange BtcTurk. The hack, which saw an estimated loss of $54 million primarily in Avalanche (AVAX) tokens, has sparked significant concern within the crypto community. Blockchain analyst ZachXBT, who has been closely following the incident, praised Binance for its proactive role in addressing the security breach.
https://twitter.com/RichardTeng/status/1804525525614096511?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1804525525614096511%7Ctwgr%5Ea9e45b56ea3e93eb872b2b4aad7f90689e02899d%7Ctwcon%5Es1&ref_url=https%3A%2F%2Fcrypto2community.com%2Fcrypto-news%2Fbinance-freezes-5-3m-in-funds-after-alleged-54m-btcturk-hack%2F
BtcTurk Faces Cyber Attack
On June 22, BtcTurk, a prominent Turkish crypto exchange, faced a cyberattack that resulted in the loss of a substantial amount of users’ funds. According to BtcTurk, the attack compromised only a portion of the balances of ten cryptocurrencies stored in their hot wallets. Fortunately, the majority of assets stored in cold wallets remained secure. In response to the breach, BtcTurk halted all cryptocurrency withdrawals and deposits to prevent further losses. The exchange reassured users that its financial reserves exceed the amount affected by the hack, ensuring that user funds are protected.
BTCTurk was apparently hacked
— ZachXBT (@zachxbt) June 22, 2024
Not sure if their hot wallet is on x-chain pic.twitter.com/4Tdj7GjNrF
Blockchain analyst ZachXBT reported that approximately 1.96 million AVAX tokens, valued at around $54 million, were suspiciously transferred following the attack. The funds were moved to exchanges like Binance and Coinbase via THORChain, and then withdrawn as Bitcoin in large transactions. The AVAX token experienced a sharp 10% decline, dropping to $24.92, following the hack.
Binance’s Proactive Measures
Binance CEO Richard Teng confirmed that the exchange is actively assisting in the investigation of the BtcTurk attack. The exchange has already frozen over $5 million of the stolen funds as part of its efforts to protect the crypto ecosystem from bad actors. “Our investigations & security teams work around the clock as part of our proactive efforts to protect the ecosystem from bad actors. We will provide further updates as relevant,” said Teng.
In a post on June 22, ZachXBT praised Binance for its efforts in aiding the crypto community during security incidents. “Binance gets crucified by the media when in reality their security team generally does more for victims + goes out of their way to assist in incident response,” ZachXBT stated.
Rising Security Breaches in the Crypto Sector
The BtcTurk hack is part of a worrying trend of rising security breaches in the cryptocurrency sector. On the same day as the BtcTurk attack, CoinStats, a crypto portfolio management firm, temporarily suspended user activity following a security breach that affected 1,590 crypto wallets. Additionally, Defiance Capital’s official social media account was compromised, leading to a fraudulent announcement about the launch of the DEFIANCE token.
According to Crystal Intelligence, the crypto industry has faced 785 hacks and exploits over the past 13 years, resulting in nearly $19 billion in stolen digital assets. The first known crypto hack occurred on June 19, 2011, marking the beginning of a long history of security challenges in the industry.
As the crypto sector continues to grow, so does the importance of robust security measures. The proactive steps taken by exchanges like Binance are crucial in protecting users and maintaining trust in the industry.
