Hackers stole around $570 million worth of digital currencies from Binance, in a rare blow to the biggest cryptocurrency exchange on the planet. This is another blow to the troubled digital asset sector, which is struggling to regain investor confidence after a price collapse.
Binance estimated on Friday that digital currencies worth about $110 million had been stolen, and blocked blockchain operations for approximately eight hours.
However, the company later revealed that the hackers had stolen around two million BNB, Binance’s own digital currency, priced at $284. The hack targeted the BSC Token Hub, a bridge between two of Binance’s systems. Binance.
The incident comes at a time when digital assets are trying to recover from a credit crunch that has slashed the value of high-profile digital currencies, such as bitcoin, by nearly two-thirds.
Industry data has also indicated that cryptocurrency thefts are skyrocketing this year. Cybercriminals stole nearly $2 billion by the end of July this year, nearly double the total for the first seven months of last year, according to data from Chainalysis.
The highest-impact thefts included $600 million of the blockchain that underpins the popular crypto game platform Axie Infinity.
Many of these hacking actions have had their origin identified as agents sponsored by the North Korean government.
Binance’s position as the world’s largest cryptocurrency exchange means that Friday’s action represents a significant shake-up for the digital asset industry.
“Your Funds Are Safe,” Binance Founder Says After $570 Million Hack Scam
In a series of social media posts, Changpeng Zhao, founder and chief executive of Binance, told the site’s users, “The issue is contained, now. Your funds are safe. We apologize for the inconvenience and will provide more information when available. “
Binance has asked validators on the affected network, charged with securing the system, to stop their work. The funds were stolen from the BSC Token Hub, a bridge that allows customers to transfer digital currencies linked to a given blockchain to different blockchains. The hack exploited a weakness that created additional BNB digital currencies on the network, according to Zhao.
Many of the most used blockchains on the planet, such as Binance Smart Chain and Ethereum, run on separate technologies or use different currencies. This means that investors and developers are not able to easily transfer digital currencies from one blockchain to another in order to use or trade them elsewhere.
Binance estimated that around $7 million worth of stolen digital currencies had been frozen by the cryptocurrency community and its security operations.
Binance Smart Chain has allowed the largest cryptocurrency exchange on the planet to open its doors for developers to build apps that use smart contracts, based on Binance’s digital currency. Binance launched the new blockchain in September 2020, a period when the cryptocurrency industry saw great interest in decentralized financial projects.
(translated by Paulo Migliacci)
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
