Binance Freezes $5 Million USD in Relation to BtcTurk Exchange Hack

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The world’s largest cryptocurrency exchange, Binance, has taken swift action to block funds associated with a cyberattack targeting the Turkish crypto exchange BtcTurk.

The attack focused on ten hot wallets belonging to BtcTurk after reports of suspicious transactions involving Avalanche (AVAX) tokens emerged on Saturday. BtcTurk has assured its users that their cold wallets, which hold the majority of their assets, remain secure and that the company remains financially stable.

Binance CEO Richard Teng confirmed that the company is assisting BtcTurk in investigating the incident. Binance has successfully frozen over $5.3 million in stolen funds, effectively preventing further unauthorized transactions.

Binance is assisting BtcTurk with investigations and have frozen over $5.3M in stolen funds so far.

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. https://t.co/8j6uMgOPm6

— Richard Teng (@_RichardTeng) June 22, 2024

Founded in 2013, BtcTurk is one of the largest and oldest cryptocurrency exchanges in Turkey. Similar to other exchanges, it provides a platform for buying, selling, and trading various cryptocurrencies, including Bitcoin, Ethereum, and numerous altcoins.

Blockchain Expert ZachXBT’s Investigation into the BtcTurk Hack

Blockchain analyst ZachXBT’s investigation suggests that approximately $54 million worth of Avalanche (AVAX) tokens may be connected to the cyberattack. These funds were transferred across various exchanges, including Binance and Coinbase, using the THORChain protocol. The stolen assets were subsequently converted into Bitcoin and split into two separate wallets.

Just shared on Telegram that this entity withdrew $46M+ worth of BTC from Coinbase/Binance after those AVAX deposits https://t.co/aONZbESvre

— ZachXBT (@zachxbt) June 22, 2024

ZachXBT also indicated a potential link between this hack and another attack targeting the online casino Sportsbet, suggesting that over $3.5 million might have been stolen by the same entity responsible for the BtcTurk breach.

AVAX Price Movements Post-Attack

Following the cyberattack and subsequent transactions, the price of Avalanche (AVAX) temporarily dropped by about 10%. However, it has since rebounded, recovering approximately 5% of its value from Saturday’s low.

Currently, AVAX is trading around $25, with a daily trading volume of approximately $400 million and a market capitalization of $10 billion.