Binance Freezes $5.3 Million in Alleged BtcTurk Hack

Binance Freezes Millions in Alleged BtcTurk Hack, Offers Support

Cryptocurrency exchange Binance is stepping up to assist fellow exchange BtcTurk in the wake of a cyberattack. According to Binance CEO Richard Teng, they are actively investigating the incident and have frozen over $5.3 million in potentially stolen funds.

BtcTurk, boasting over 5 million users, confirmed the attack primarily targeted cryptocurrencies stored in hot wallets. These digital wallets, while convenient for frequent trading, are more susceptible to hacking compared to offline cold storage solutions.

“Only a portion of the balances in our hot wallets for 10 cryptocurrencies were affected,” a translated statement from BtcTurk clarified on June 22nd. “The majority of assets held in our cold storage remain secure.”

Binance Pledges Further Updates and Industry Collaboration

Teng, in a post directed to his nearly 300,000 followers, assured the community that Binance is actively investigating the attack alongside their security team. He emphasized their commitment to protecting the cryptocurrency ecosystem from malicious actors and promised to provide further updates as the investigation unfolds.

This incident underscores Binance’s proactive approach to cybersecurity. Blockchain investigator ZackXBT recently commended the exchange for its willingness to assist other platforms during security breaches. “Despite media negativity, Binance’s security team often goes above and beyond to help victims,” he stated on June 22nd.

BtcTurk and Lykke Highlight Ongoing Security Challenges

As of publication, BtcTurk CEO Özgür Güneri has not commented publicly on the matter. This incident follows closely on the heels of a similar attack on Switzerland-based Lykke. The exchange halted withdrawals on June 4th after suffering an exploit, allegedly resulting in losses of $19.5 million in crypto assets. Blockchain security researcher SomaXBT accused Lykke of attempting to conceal the breach.

Cointelegraph reached out to BtcTurk for further information but did not receive a response at the time of writing.

These recent attacks highlight the ongoing cybersecurity challenges faced by cryptocurrency exchanges. Binance’s commitment to collaboration offers a glimmer of hope. As investigations progress and information emerges, the industry can learn from these incidents and bolster its collective defenses against cybercrime.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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