In a major cryptocurrency security incident, the Turkish cryptocurrency exchange BtcTurk has fallen victim to a cyberattack that affected the funds held in ten of its hot wallets. Although the exchange claims the vast majority of its crypto, stored in cold wallets, remains secure, the estimated losses from the hack are staggering, with blockchain sleuth ZachXBT pegging the possible losses at around $54 million, primarily in AVAX tokens.
Binance Steps In to Assist BtcTurk
In a swift response, Binance, the world’s largest crypto exchange, has announced that it is assisting BtcTurk with the investigation and has already frozen over $5.3 million in stolen funds. Binance CEO Richard Teng stated on X that the exchange is committed to supporting BtcTurk and working to recover the stolen assets.
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
Tracing the Stolen Funds
According to ZachXBT’s analysis, the stolen funds were transferred to exchanges like Binance and Coinbase using THORChain, and then withdrawn as Bitcoin to two separate wallets. The relevant Avalanche wallet had previously been identified by a blockchain researcher as belonging to a Turkish cryptocurrency exchange, further corroborating the connection to the BtcTurk hack.
“Binance CEO Richard Teng stated on X that his exchange is assisting BtcTurk with investigating the hack and has frozen ‘over $5.3 million in stolen funds so far.'”
Just shared on Telegram that this entity withdrew $46M+ worth of BTC from Coinbase/Binance after those AVAX depositshttps://t.co/aONZbESvre
— ZachXBT (@zachxbt) June 22, 2024
Sportsbet Also Targeted
In a related development, ZachXBT stated on Telegram that the online casino Sportsbet “was likely hacked for $3.5M+ by the same threat actor as BTCTurk two hours before as funds from the thefts comingled.” Sportsbet has acknowledged the issue, stating that “transactions on BTC and BSC networks are currently unavailable as well as gameplay with BTC and BNB.”
Impact on Avalanche Prices
The price of Avalanche (AVAX) fell approximately 10% following the transfers, though it has since recovered 5% from its lowest value on Saturday, according to The Block’s Avalanche Price Page.
The BtcTurk hack and the subsequent freezing of funds by Binance highlight the ongoing challenges in the cryptocurrency ecosystem, where exchanges and users alike must remain vigilant against sophisticated cyber threats. As the industry continues to evolve, the need for robust security measures and collaborative efforts between exchanges and law enforcement agencies becomes increasingly crucial.
