Binance Assists BtcTurk in Investigation Over $5M Cyber-Attack
Summary:
Binance is aiding Turkish crypto exchange BtcTurk in an ongoing investigation over a major cyber-attack. The attack primarily targeted BtcTurk's hot wallets, software-based wallets linked to the internet, causing significant losses. So far, Binance has frozen over $5 million in stolen funds, as revealed by CEO, Richard Teng. The incident comes shortly after another security breach on Swiss-based crypto exchange Lykke, which led to the platform halting its withdrawals.
In a bid to thwart a cyber-attack on BtcTurk, a Turkish crypto exchange platform, Binance has reportedly stepped in to facilitate the ongoing investigation; the crypto exchange giant has put on hold stolen crypto assets exceeding $5 million, as revealed by Binance CEO, Richard Teng. In his post on June 22, Teng stated how Binance was proactively supporting BtcTurk in the investigative process and had already frozen about $5.3 million of illicitly acquired funds.
With a user base extending over 5 million as reported on its website, BtcTurk confirmed that it suffered major losses in hot wallets. These software-based crypto wallets which are always online and apt for frequent transactions, unfortunately, have an elevated exposure to hackers, in contrast to their offline counterparts, cold storage. Hence, while the attack did eat into a small chunk of balances across 10 crypto hot wallets, the majority of the assets resting in cold wallets stayed secure, as declared in the BtcTurk's statement on June 22.
As BtcTurk publicized news of the digital attack, Teng informed his sizable group of 299,800 followers, revealing that updates would be duly shared once their investigation squad sheds light on more information. Teng declared, "Our security and investigations teams work full-on, perpetually, in a bid to shield the ecosystem from harmful entities. We shall come forward with further updates as the situation warrants."
This comes at a time when ZackXBT, a noted Blockchain investigator, applauded Binance for its incredible efforts in contributing to the larger community during security hitches. ZackXBT, through his post on June 22, observed, “Binance often falls prey to media scrutiny, whereas, in reality, their security team usually extends beyond their official role to assist victims during such consequences.”
As of now, Özgür Güneri, the CEO of BtcTurk, hasn't relayed any public remarks on this subject.
This incident draws attention just a few days post a Swiss-based crypto exchange, Lykke, halted withdrawals pursuant to an exploit that it fell prey to on June 4. SomaXBT, a Blockchain security researcher, charged the team with efforts to conceal the breach, claiming, “@lykke CTX suffered an exploit and lost crypto assets worth $19.5 million, but the team is persistently trying to shroud this fact.”
At the time of reporting, BtcTurk has not responded to Cointelegraph's request for a comment.
Published At
6/23/2024 5:38:50 AM
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