Binance Freezes $450,000 From Curve Finance Hack

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Key Takeaways:

  • Binance had decided to intervene by keeping an eye on the proceedings at Curve.
  • According to Binance CEO Changpeng Zhao, most of the funds that hackers stole from the DeFi protocol Curve Finance this week have been frozen or recovered.
  • On August 10, CZ revealed that the hack had already cost Curve approximately $570,000 in damages.

On Friday, Changpeng Zhao, the founder of Binance, claimed that most of the Curve funds had been recovered. Curve earlier this week.

According to Zhao’s tweet, Binance “froze/recovered (sic) $450k of the Curve stolen funds, representing 83%+ of the hack.” “We are collaborating with [law enforcement] to give the users their money back. The hacker kept sending money to Binance various ways, believing that we couldn’t catch him.

A security incident on August 9 forced Curve, the fourth-largest DeFi (decentralized finance) protocol with about $6 billion in total value locked (TVL), to warn users not to use its website. Tokens estimated to be worth $570,000 were allegedly taken in the hack.

The hacker had defrauded Curve investors by setting up a DNS entry for the protocol and publishing malicious contracts on the home page. The victim’s bank accounts were empty when they accepted the contract.

According to Curve, “What has happened strongly suggests starting moving to ENS instead of DNS,” suggesting that switching to the Ethereum Name Service might increase security against frontend attacks that drain wallets.

A Web3 approach to DNS would involve switching to ENS, which would result in a named source that is more secure and is supported by two Ethereum smart contracts.

According to Marcus Sotiriou, an analyst at GlobalBlock, the hackers changed the IP address that the DNS for the website translated. He claimed in a note that they built a remarkably similar web application and provided the IP address of their own server to enable them to create new smart contracts to steal money. Users were approving transactions that were stealing their money in reality.

Binance has meddled before to recover stolen cryptocurrency.

On April 22, a $622 million hack on Axie Infinity’s Ronin sidechain occurred. Later it was discovered that the Lazarus Group hacker group from North Korea was to blame.

According to Zhao on Twitter, the exchange caught $5.8 million going to Binance spread across 86 accounts.

He continued, “We have also done this numerous times for other projects in the past.”

Netizens are very grateful for Binance’s efforts to support the community whenever possible. It’s good that the cryptocurrency space has a leader like Binance who is out to ensure the space remains safe and harmful actors are stopped using any means necessary, according to users like @TajoCrypto.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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