Binance, a popular cryptocurrency exchange, is reportedly collaborating in the investigation of a malicious attack on Turkish crypto exchange BtcTurk. Over $5 million in stolen funds has been frozen, as confirmed by Binance CEO Richard Teng.
In a post on June 22, Teng announced, “Binance is aiding BtcTurk in their investigations and has frozen over $5.3 million in stolen funds thus far.”
According to BtcTurk’s website, the attack targeted holdings in hot wallets, which are online-based crypto wallets connected to the internet. While hot wallets are convenient for frequent transactions, they are more susceptible to cyber attacks compared to offline cold storage.
A translated version of BtcTurk’s statement on June 22 revealed, “Only a portion of the balances of 10 cryptocurrencies in our hot wallets were impacted by this cyber attack, while the majority of assets held in our cold wallets remain secure.” The exchange boasts over five million users.
Teng assured his followers on X that Binance will share updates as more information becomes available. “Our teams are working diligently to safeguard the ecosystem from malicious actors. We will provide further updates as necessary,” Teng mentioned.
Praising Binance for its proactive stance in assisting victims during security incidents, blockchain investigator ZackXBT stated, “Binance is often criticized by the media, but in reality, their security team goes above and beyond to help victims and respond to incidents.”
BtcTurk’s CEO Özgür Güneri has not yet commented publicly on the issue. This incident follows a recent exploit on June 4, where Switzerland-based crypto exchange Lykke temporarily suspended withdrawals.
Blockchain security researcher SomaXBT accused the Lykke team of trying to conceal the security breach, claiming, “@lykke CTX was exploited, resulting in a loss of $19.5 million worth of crypto assets.”
Cointelegraph reached out to BtcTurk for a comment, but as of the time of publication, no response has been received.
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