Binance, the world’s largest cryptocurrency exchange, has taken action to halt funds associated with a cyberattack on biggest Turkish exchange, BtcTurk.
BtcTurk was attacked on 22 June 2024. In an official statement, the exchange said the attack led to uncontrolled withdrawals on its platform. However, only a portion of the balances in the hot wallets of ten cryptocurrencies were affected.
The platform’s cold wallets, where the majority of assets are stored, continues to remain safe. Cold wallets are known for storing private keys offline, usually on a physical device.
BtcTurk insists that the incident did not have a significant impact on user funds. “As a precaution, cryptocurrency deposits and withdrawals have been stopped and will be opened as soon as possible once our work is completed,” the statement said.
Binance Intercepts Portion Of Stolen Funds
Richard Teng, CEO of Binance, confirmed that his company is actively assisting BtcTurk in investigating the cyberattack. As part of its collaborative efforts, Binance has frozen over $5.3 million in stolen funds, effectively preventing further unauthorized transfers.
“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,” Teng wrote on X.
Meanwhile, a timing analysis conducted by blockchain investigator ZachXBT suggested a connection between the cyberattack and approximately $54 million worth of Avalanche tokens. These funds were traced to various exchanges, including Binance and Coinbase, through the THORChain protocol.
The stolen funds were subsequently converted into Bitcoin and transferred to two separate wallets. Notably, these significant transactions coincided with BtcTurk’s public disclosure of the attack.
Just shared on Telegram that this entity withdrew $46M+ worth of BTC from Coinbase/Binance after those AVAX depositshttps://t.co/aONZbESvre
— ZachXBT (@zachxbt) June 22, 2024
Meanwhile, Avalanche is seeing a temporary decline of approximately 10%. As of now, the token is trading at $24.68, down by 4.41% over the past day.
SEC Warns About Rising Crypto Scams
The US Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy has issued a stark warning to investors about the rising use of cryptocurrency in sophisticated scams.
These frauds capitalize on the burgeoning popularity of crypto assets, including cryptocurrencies, coins, and tokens, which are now a prime target for malicious activities.
The recent warning from the SEC comes as regulatory agencies around the world are trying to tackle crypto-related scams.
Last month, two Canadian men, Aiden Pleterski and Colin Murphy, were arrested and charged with fraud in connection with an alleged crypto and foreign exchange investment scheme that swindled investors out of $40 million CAD (approximately $30 million).
EXPLORE: 10 Best Decentralized Crypto Wallets for 2024
In another similar incident, Chinese authorities knocked down an illegal operation involving underground banks and virtual currencies, exposing a staggering $300 million crypto fraud. The investigation led to the arrest of six individuals suspected of engaging in criminal activities related to money laundering between China and South Korea.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
