Binance has swiftly responded to a security breach involving the Turkish cryptocurrency exchange BtcTurk.
Binance has frozen over $5.3 million in stolen funds linked to the recent hack of BtcTurk. The hack resulted in a loss of approximately $54 million, primarily in Avalanche (AVAX) tokens, and has alarmed the crypto community. Blockchain analyst ZachXBT praised Binance’s intervention for its proactive approach to mitigating the aftermath of the breach.
Details of the BtcTurk Cyber Attack
On June 22, BtcTurk, a player in the Turkish cryptocurrency market, experienced a cyberattack leading to substantial user fund losses. BtcTurk disclosed that the attack compromised a portion of the balances of ten cryptocurrencies stored in their hot wallets, while the majority of assets in cold wallets remained secure.
Moreover, the exchange halted all cryptocurrency withdrawals and deposits to prevent further losses. BtcTurk assured its users that their financial reserves exceeded the amount affected by the hack, thereby protecting user funds.
ZachXBT reported that around 1.96 million AVAX tokens, valued at approximately $54 million, were transferred under suspicious circumstances following the attack. These funds were moved to exchanges such as Binance and Coinbase via THORChain and then withdrawn as Bitcoin in large transactions. Following the hack, the AVAX token saw a sharp decline of 10%, falling to $24.92.
BTCTurk was apparently hacked Not sure if their hot wallet is on x-chain pic.twitter.com/4Tdj7GjNrF
— ZachXBT (@zachxbt) June 22, 2024
Binance’s Proactive Measures
Binance CEO Richard Teng confirmed that the exchange is actively assisting in investigating the BtcTurk attack. As part of their efforts to safeguard the crypto ecosystem, Binance has already frozen over $5 million of the stolen funds. Teng stated,
“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.”
In a post on June 22, ZachXBT commended Binance for its efforts in supporting 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 indicates a troubling rise in security breaches within the cryptocurrency sector. On the same day as the BtcTurk attack, CoinStats, a crypto portfolio management firm, temporarily suspended user activity due to a security breach affecting 1,590 crypto wallets. Additionally, Defiance Capital’s official social media account was compromised, resulting in a fraudulent announcement about the launch of the DEFIANCE token.
According to Crystal Intelligence, the cryptocurrency industry has endured 785 hacks and exploits over the past 13 years, leading to nearly $19 billion in stolen digital assets. The first known crypto hack occurred on June 19, 2011, marking the beginning of ongoing security challenges in the industry.
The BtcTurk incident and Binance’s responsive measures highlight the ongoing need for robust security protocols in the cryptocurrency industry. Exchanges and other crypto entities must continuously enhance security measures to protect against sophisticated cyber threats.
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