Binance-Linked Wallet Breached, Resulting in $27M Loss
A well-known exchange, Binance, has been involved in a significant loss of $27 million due to a breach in one of its linked wallets. The breach mainly affected Tether (USDT) and was revealed by on-chain investigator ZachXBT.
ZachXBT Exposes $27M Crypto Heist on Binance-Linked Wallet
An analysis by ZachXBT unveiled that a cryptocurrency wallet recently experienced a breach, resulting in the loss of $27 million in Tether stablecoins (USDT) on November 11.
According to ZachXBT’s investigation, the stolen funds were quickly converted from USDT to Ethereum (ETH) and then transferred across various services before being bridged to Bitcoin via THORChain.
The origin of the funds adds an intriguing layer to the story. The wallet had received the sum through a withdrawal from Binance just a week prior to the heist. Further deepening the connection, ZachXBT’s investigation revealed that in May 2019, the same wallet received funds from an address marked by Etherscan as a Binance smart contract deployer.
Record $699 Million Lost in Q3 2023 Web3 Security Breaches
Certik’s Web3 Security Quarterly report for Q3 2023 highlighted that this quarter has been the most eventful, with over $699 million lost across 184 security incidents. This figure exceeds the combined losses of the first two quarters, with $320 million in Q1 and $313 million in Q2.
The report identified the North Korean state-affiliated Lazarus Group as one of the most formidable threat actors responsible for significant losses. The group targeted Web3 personnel this year, resulting in confirmed losses of at least $291 million. Their strategy heavily relies on social engineering to breach security defenses across multiple platforms.
Private key compromises also contributed significantly to this quarter’s losses, accounting for $204 million across 14 incidents. Incidents involving Mixin and Multichain alone resulted in $325 million in losses.
Hot Take: Heightened Concerns Over Cryptocurrency Security
The breach of the Binance-linked wallet and the substantial losses reported in Certik’s Web3 Security Quarterly report for Q3 2023 have raised concerns about cryptocurrency security. With sophisticated threat actors like Lazarus Group targeting Web3 personnel and private key compromises leading to substantial financial losses, there is an urgent need for enhanced security measures within the cryptocurrency industry. As crypto assets continue to gain popularity and adoption, ensuring robust security protocols is crucial for maintaining trust and protecting investors’ funds.
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