The Binance hack has given the crypto industry one of those moments when the memes, the money, and the uncomfortable questions all arrive at once.<\/p>\n
Nikita Bier, X\u2019s former head of product, didn\u2019t hold back either. Taking a direct swipe at CZ, he wrote,<\/p>\n
\u201cThe largest crypto exchange in the world just experienced the largest robbery in human history \u2013 and the person running it is a nomadic autistic man in Dubai posting \u201cFunds are SAFU!\u201d What a time to be alive.\u201d<\/p>\n
Meanwhile, Elon Musk said that \u201cEveryday is Zeroday.\u201d<\/p>\n
On October 29, Binance suffered<\/a> a major security incident with an estimated impact of approximately $6.3 billion, according to the crypto exchange\u2019s own update. On-chain investigations traced billions in unauthorized outflows across multiple blockchains, including Ethereum, Bitcoin, Tron, Arbitrum, Optimism, and Avalanche. The important detail is that Binance\u2019s preliminary investigation points towards a compromised DevOps engineer\u2019s laptop, which may have allowed the attacker to access a service container and submit unauthorized withdrawal transactions.<\/p>\n Binance says it has found no evidence of a wallet private-key leak. Blockchain investigators also identified the use of EIP-7702 authorizations, with 50 signed authorizations submitted in an attempt to match the wallet\u2019s changing nonce. One successfully matched, which allowed malicious code to execute against the affected wallet. The investigation is still ongoing, so the complete attack pathway has not yet been officially established.<\/p>\n Tether froze more than $1.567 billion in USDT, while Circle froze over $800 million in USDC in coordination with law enforcement. Arbitrum\u2019s Security Council also intervened to freeze assets, alongside other token issuers. Binance\u2019s reported frozen total has approached $3 billion, although the exact figure has changed as recovery efforts progressed. That still leaves a substantial amount to trace and recover.<\/p>\n CZ, who no longer runs Binance but remains a major shareholder, said the incident did look like a hack and expressed confidence that users would be fully covered. Co-CEO Yi He also confirmed that the crypto exchange would absorb the losses through its SAFU fund and company resources. Deposits and withdrawals were temporarily suspended while security checks were conducted, and Binance Alpha trading was also paused.<\/p>\n But the shock traveled well beyond Binance. Bitcoin briefly fell near $76,300, wiping out<\/a> nearly $478.9 million in positions, 84.6% of which were longs. Ethereum wasn\u2019t far behind, recording $363.5 million in liquidations, with long traders accounting for 83.5%, according to Crypto Patel\u2019s estimates. Solana followed with $82.1 million, while XRP saw $38.1 million wiped out. HYPE was an interesting exception, with $31.3 million in liquidations and short positions taking the heavier hit.<\/p>\n DeFi felt the shockwave too. Aave, for instance, froze<\/a> 175 markets across 16 networks on V3, along with another 117 markets on V4, as a precautionary measure. Kamino also paused SOL and BTC borrowing to limit potential exposure.<\/p>\n ZachXBT has found<\/a> a link between the Binance and Bitget exploits. He said that the stolen funds from both incidents ended<\/a> up at the same wallet address after passing through THORChain. The popular blockchain investigator believes this points to the same attacker being behind both hacks.<\/p>\n The Bitget exploit was previously linked to North Korea-associated group TraderTraitor, which has also been connected to other incidents, including the Kelp DAO exploit. MistTrack also found that stolen TRX from the Binance hack moved through Bitget Wallet Swap Bridge to an address starting with 0xCd68. That wallet had previously been used by the Phemex hacker.<\/p>\n The post Binance Hit by a $6.3B Security Nightmare: Nikita Bier Mocks CZ, While ZachXBT Spots a Bigger Threat<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The Binance hack has given the crypto industry one of those moments when the memes, the money, and the uncomfortable questions all arrive at once. Nikita Bier, X\u2019s former head of product, didn\u2019t hold back either. Taking a direct swipe at CZ, he wrote, \u201cThe largest crypto exchange in the world just experienced the largest […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-245660","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/245660"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=245660"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/245660\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=245660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=245660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=245660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Same Hacker Behind Both Exploits?<\/h2>\n