Coin exchange hacked: $570 million worth of Binance’s BNB token stolen in another major crypto hack

Coin exchange hacked

Coin exchange hacked

One of the more well known issues that opens the possibility for exploits on Bitcoin is the transaction malleability problem. The scale of the Mt. Gox hack forced CEXs to put more security and insurance measures in place. Most high-profile CEXs keep their crypto in cold storage, and many use extra security measures like two-factor authentication.

The latest communication from the company provides the most insight yet into the security breach, although details of the exact method of compromise remain unclear. Hackers attacked a bridge between blockchains, but the situation is now “contained,” the CEO of Binance said. BNB Chain supports BNB, formerly known as Binance Coin, which is the world’s fifth-largest token with a market value of over $45 billion, according to data site CoinGecko. “This may be one of the motivations behind moving these assets to bitcoin — the greater availability of mixing services,” he added. FTX filed for bankruptcy in the U.S. on Nov. 11, 2022, seeking court protection as it looks for a way to return money to users. BNB Chain, originally known as Binance Chain, was first developed by Binance in 2019.

Wintermute, a leading cryptocurrencymarket maker, was attacked in September 2022. Theproject lost around $160 millionin a hack, and it made things worse for Wintermute because they owed $200 million to other participants in the market. A 10% bounty was offered by the CEO to the hacker if they returned the funds. Crypto sleuth who goes by ZachXBT on Twitter, claimed that Indian crypto exchange Bitbns covered up a hack under the guise of “system maintenance” on Feb. 1, 2022.

Coin exchange hacked

Chances that the hacker will return the entire loot of $197 million remain slim, as no more outbound transactions — other than the 3,000 ETH — were recorded at the time of writing. The downfall of Mt. Gox continues to highlight the importance of greater transparency and accountability within the cryptocurrency industry. A federal district court judge will determine any sentence after considering the U.S.

So what can you do to keep crypto-assets safe?

The customer’s email addresses and passwords were leaked in a massive global hack that involved 24 websites and some 747 million records. A complete list of cryptocurrency exchanges and platforms that have been hacked or suffered major security breaches is listed below. It has been argued that blockchain projects are secure, but back-to-back attacks in 2022 shattered this myth. So far, over $1.6 billion worth of cryptocurrency has been stolen from users in 2022, according to blockchain data platform Chainalysis. As of December 2017, around 980,000 bitcoins—over five percent of all bitcoin in circulation—had been lost on cryptocurrency exchanges. Many crypto hackers try to exploit vulnerabilities in a software crypto wallet’s code.

Coin exchange hacked

Stay up to date with our latest exchange reviews, promotions, how-to guides and educational articles on Bitcoin, cryptocurrency & more. The crypto exchange has claimed that 100% of the customers who experienced a financial loss have now been reimbursed. A cryptocurrency is a digital or virtual currency that uses cryptography and is difficult to counterfeit. Don’t talk publicly about owning virtual currency – If it is easy to work out that you own a cryptocurrency from your social media activity then you are much more likely to be a target. Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. As a result, risks can be amplified, including the risk that market regulators, such as the SEC, may not be able to effectively pursue bad actors or recover funds.

What are the most common crypto attacks?

The files were executed and the attacker was ultimately able to obtain the backup passphrase to Bitstamp’s wallet. CoinSecure was an Indian cryptocurrency platform that allowed the trading of Bitcoins with Rupees. In 2018, the exchange suffered a massive hack that resulted in the loss of 438 Bitcoins which was the equivalent of $3.5 million at the time. An internal staff member at CoinSecure was blamed for an incident as he was the only person with access to the private keys. Incidents like this may have contributed to the regulatory authorities in India deciding to declare Bitcoin illegal in the country. Following this incident, the company decided to rebrand the exchange under the name YouBit.

BNB Chain later said in a blog post that a total of 2 million of the BNB cryptocurrency – worth around $570 million – was withdrawn by the hacker. Claire Georges, the deputy spokesperson for Europol, the European Union’s international law enforcement agency, said the agency is aware of a number of cases against hackers who steal digital assets. But she said building a solid case is a long, slow process that doesn’t keep up with the pace of attacks.

How did the hackers pull it off?

As prices of digital assets have soared, the platforms have become increasingly juicy targets for hackers. North Korean leader Kim Jong Un has allegedly sent his hackers out to swipe digital coins as his country faces tightening trade sanctions. One researcher estimates that more than 14 percent of Bitcoin and rival currency Ether has been stolen.

The remainder of the stolen funds, comprising more than 94,000 bitcoin, remained in the wallet used to receive and store the illegal proceeds from the hack. After the execution of court-authorized search warrants of online accounts controlled by Lichtenstein and Morgan, special agents obtained access to files within an online account controlled by Lichtenstein. The recovered bitcoin was valued at over $3.6 billion at the time of seizure. Yes, there’s a long history of thefts at cryptocurrency exchanges and wallets, dating back to the infamous robbery of Tokyo-based Mt. Gox in 2014.

BNB Chain has 26 active validators at present and 44 in total in different time zones, the spokesperson added. “As with many bridge designs, there is one central point that holds most of the funds that are moving through the bridge,” Adrian Hetman, tech lead of the triaging team at Immunefi, told CNBC. “An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC,” Changpeng Zhao, Binance’s CEO, said in a tweet Thursday evening.

The popular trading platform Poloniex lost about 12.3% of its total Bitcoin holdings in an attack in 2014. A hacker had reportedly exploited a vulnerability in the exchange’s coding that allowed access to the private keys for the funds. Trading was halted as the hackers successfully transferred stolen funds of 76 Bitcoins from the exchange worth $50,000 at the time.

Can Bitcoin Be Hacked & Is Bitcoin Safe To Use?

There are rumors of an exit scam as the website’s social media profiles were deleted following the “hack”. According to Binance CEO, Changpeng Zhao, commonly known as “CZ”, some user two-factor authentication codes and API tokens were compromised during the attack. According to the Binance Blog, the attackers used a variety of methods to exploit Binance’s security systems including phishing, viruses and other vectors. Customers that were affected by the hack were reimbursed in full with funds taken from the exchange’s insurance account. With the addition of new products, the cryptocurrency industry has grown rapidly in the last few years. The sector may even be advancing too fast, as it is being hacked more and more frequently.

The theft was the second-largest bitcoin heist ever, dwarfed only by the Mt. Gox theft in 2014. According to Forbes, “All of Bitfinex’s customers,… will stand to lose money. The company has announced a cut of 36.067% across the board.” Following the hack the company refunded customers. In 2022, the US government recovered 94,636 bitcoin (worth approximately $3.6 billion at the time of recovery) from the 2016 thefts of the Bitfinex exchange. On December 6, 2021, the cryptocurrency exchange BitMart lost around $135M worth of Ethereum and an estimate of around $46 million in other cryptocurrencies due to a breach of two of its wallets.

Over its journey, Bitfinex has been involved in a few incidents, most notably the incident on August 2, 2016, where an unauthorized transfer of approximately 120,000 Bitcoins was made from the exchange. The value of the Bitcoin at the time of the incident was nearly $623M asreported by Coindesk. Tether is a stablecoin, a cryptocurrency pegged to and backed by fiat currencies like the U.S. dollar. Binance is a cryptocurreny exchange that offers additional blockchain-specific services. Spread your investments across exchanges – A number of exchanges have been breached.

The crypto industry has had a rough year, with roughly $2 trillion in value being erased since the peak of a blistering rally from 2020 to 2021. The implosion of $60 billion blockchain venture Terra and a worsening macroeconomic environment have severely impacted market sentiment. A Binance spokesperson told CNBC the company coordinated with BNB Chain validators to enact an upgrade. That meant that most of the funds remained in the exploiter’s crypto wallet, while about $100 million was “unrecovered.” If an exchange is wealthy enough and plans ahead to have an emergency fund, it can compensate its customers if its operation is hacked, Jevans said.

Since the Binance Exchange hack on May 7, 2019 there has been no further security breaches or incidents that have resulted in any loss of customer funds of personal details. Binance does have an insurance fund to be able to reimburse its customers of a future security breach. However, there can never be any guarantees and customers should never leave all their funds on Binance. To date, the stolen funds have not been cashed out using another exchange or recovered. According to a Bitfinex blog post, a reward of 5% of the total property recovered will be given. Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications .

So-called cross-chain bridges are tools that allow the transfer of tokens from one blockchain to another. In total, hackers withdrew 2 million BNB tokens — about $570 million at current prices — from BNB Chain said in a blog post on Friday. Crypto exchanges work like traditional money exchanges, setting prices for various currencies and taking a small fee to let users trade one. But while a handful of countries have strict regulations in place, it’s relatively easy for tech entrepreneurs to set up an exchange nearly anywhere in the world and run it however they like. Bitfinex is a cryptocurrency exchange that is currently ranked #5 in terms of reported trading volume, liquidity and traffic. Founded in 2012, Bitfinex has been the go-to destination for advanced charting tools for cryptocurrency traders.

In August Nomad, a service that allows users to send crypto tokens between different blockchains, was struck, with media reports saying it was taken for nearly $200m. Binance, the world’s largest cryptocurrency exchange, may have lost half a billion dollars after a hack of its network. Older exchange hack from 2013 that affected Czech Republic-based bitcoin exchange