CZ stated that $450,000 constitute over 83% of the hack, and was frozen as the hacker transmitted the funds to the exchange. While the Binance chief mocked the hacker, he also confirmed that the platform is working to return the funds to the victims. However, the duration of this process is not yet known.
$2bn stolen in 13 cross-chain bridge hacks
On August 10 it was revealed that a DNS problem led to a front-end exploit on Curve Finance. The Curve team thought the site’s nameserver was compromised as a result of a bug. Meanwhile, CZ also took to Twitter to explain that a malicious contract was posted on the front page by the bad actor which would empty the victim’s wallet once they approved it.
Meanwhile, without making any DNS recommendations, the Binance co-founder had suggested against using GoDaddy for DNS and recommended switching to securer options used by companies like Google, Apple, and Microsoft.
According to data from Chainalysis, breaches on these cross-chain bridges have cost users the most since the year’s beginning with the largest cyber security threat emerging with the record theft of over $610 million from the Ronin network.
The blockchain analytics firm stated, “Chainalysis estimates that $2 billion in cryptocurrency has been stolen across 13 separate cross-chain bridge hacks, the majority of which was stolen this year. Attacks on bridges account for 69% of total funds stolen in 2022 so far. “
Is Binance dealing with cyber security threats?
That said, Binance is also dealing with regulatory concerns at a global level.
Earlier, a Reuters Special Report had signaled that Binance has become a hub for hackers, fraudsters, and drug traffickers. The June report alleged, “For five years, the world’s largest cryptocurrency exchange Binance served as a conduit for the laundering of at least $2.35 billion in illicit funds, a Reuters investigation has found.”
Another report claimed that the global exchange allegedly permitted users in Iran to trade in violation of American sanctions. Robert Auxt, the co-founder of Eterbase, had told the paper that ‘Binance had no idea who was moving money through their exchange.’
Notably, as a safety filter, the platform had also introduced Project Shield in partnership with CertiK and PeckShield to review project tokens that get listed on Binance centralized exchange to keep a check on frauds and rug pulls.