Binance Freezes $5.3M In Funds From BtcTurk Cyberattack
BtcTurk reassured its users in a statement on its website and denoted that most assets stored in cold wallets remained secure, safeguarding the bulk of its users' holdings.
Ashish Khaitan June 24th, 2024
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Following the massive cyberattack on Turkish cryptocurrency exchange BtcTurk, Binance has joined efforts to investigate the incident and has frozen over $5.3 million in stolen funds.
Binance CEO Richard Teng confirmed this intervention on X, sharing operation details. The BtcTurk cyberattack, which occurred on June 22, 2024, targeted BtcTurk’s hot wallets, exposing vulnerabilities in the exchange’s internet-connected software-based crypto wallets.
Source: X
BtcTurk reassured its users in a statement on its website and denoted that most assets stored in cold wallets remained secure, safeguarding the bulk of its users’ holdings.
Binance CEO Richard Teng stated on X that their team is actively supporting BtcTurk in their investigation and pledged to provide updates as their security teams uncover more information.
Decoding the BtcTurk Cyberattack
Cryptocurrency investigator ZachXBT hinted at a potential link between the BtcTurk breach and a $54 million Avalanche transfer. The transfer, involving 1.96 million AVAX to Coinbase and subsequent Bitcoin withdrawals from Binance, coincided suspiciously with the timing of the cyberattack on BtcTurk.
Source: X
Despite the setback, BtcTurk announced plans to gradually restore crypto deposit and withdrawal services once their cybersecurity measures are completed. They emphasized that their financial resilience surpasses the amount lost in the attack, ensuring that user assets remain unaffected.
“Our teams have detected that there was a cyber attack on our platform on June 22, 2024, which caused uncontrolled footage to be taken. Only some of the balances in the hot wallets of 10 cryptocurrencies were affected by the cyber attack in question, and our cold wallets, where most of the assets are kept, are safe. BtcTurk’s financial strength is well above the amounts affected by this attack, and user assets will not be affected by these losses”, reads the organization’s statement.
Mitigation Against the Cyberattack on BtcTurk
The BtcTurk cyberattack specifically impacted deposits of various cryptocurrencies, including Bitcoin (BTC), Aave (AAVE), Algorand (ALGO), Ankr (ANKR), Cardano (ADA), Avalanche (AVAX), ApeCoin (APE), Axie Infinity (AXS), Chainlink (LINK), Cosmos (ATOM), Filecoin (FIL), among others, says BtcTurk’s.
“Our teams are carrying out detailed research on the subject. At the same time, official authorities were contacted. As a precaution, cryptocurrency deposits and withdrawals have been stopped and will be made available for use as soon as our work is completed. You can follow the current status of the transactions on https://status.btcturk.com”, concludes the statement.
As investigations continue, both BtcTurk and Binance are working diligently to mitigate the impact of the cyberattack and strengthen their security protocols to prevent future incidents. Users are encouraged to monitor official channels for updates on the situation. By collaborating and taking swift action, Binance and BtcTurk aim to uphold trust within the cryptocurrency community while enhancing the resilience of their platforms against online threats.
