BTCTurk Hack: Binance comes to the rescue and saves $5 million

BTCTurk is a cryptocurrency exchange platform based in Türkiye. During the weekend, the platform was the victim of a hack that resulted in the loss of millions of dollars. Fortunately, the platform was assisted by Binance which made it possible to recover part of the funds.

BTCTurk hack: the platform paused

Saturday June 22, the BTCTurk exchange platform alerted its users that a hack was in progress. According to the first announcement published on the official website of the exchange, it seems that a ten hot wallets have been impacted. Thus, the hacker made numerous unauthorized withdrawals. The platform’s cold wallets would not have been impacted.

“Our teams identified that a cyberattack on our platform on June 22, 2024 resulted in uncontrolled withdrawals. Only a portion of the balances of 10 cryptocurrencies in hot wallets have been affected, while the majority of assets, kept in our cold wallets, are safe. »

In its announcement, the exchange attempts to reassure users by announcing that its financial capacity is “much greater” than the amounts stolen during the attack.

However, the platform was paused while an internal investigation could be carried out and to verify that the flaw could have been corrected.

Finally, the markets gradually reopened between Sunday June 23 and Monday June 24.

Unfortunately, the total amount of damage has not yet been communicated by BTCTurk. However, it could amount to several tens of millions of dollars.

Impact of the attack and rescue of Binance

Shortly after the attack, the price of the AVAX token on the Avalanche blockchain recorded a 10% drop.

According to crypto-investigator ZachXBT, this fall is probably linked to the hack. In fact, the hacker transferred 1.96 million AVAX tokens, worth $54 million via Coinbase and Thorchain. Thus, the fall could be a consequence of the massive sale of AVAX tokens by the BTCTurk hacker.

A few hours after the attack, Richard Teng, the current CEO of Binance, revealed that he had managed to get his hands on part of the funds.

Thus, the teams of Binance reportedly managed to seize $5.3 million from the attack. The funds had passed through the exchange and Binance was able to freeze them.

“Binance is assisting BtcTurk with its investigations and has frozen over $5.3 million in stolen funds to date. Our investigative and 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 necessary. »

However, this is only a tiny part of the total amount stolen from BTCTurk. Indeed, AVAX assets alone represent $54 million. Thus, it is very likely that other millions of losses have been recorded on other chains.

Recently, another exchange platform, this time European, was also the target of a hack. In fact, the exchange Lykke was hacked for a total of $23 million.

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Software and distributed systems engineer by training, passionate about cryptos since 2013. Jack of all trades, between mining and development, I am always looking to learn more about the world of cryptocurrencies and to share the fruit of my research through my articles .

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