Internet scammers hit Crypto firm, Binance, stole $100m
The world’s largest cryptocurrency exchange, Binance, reported on Friday that scammers had stolen $100 million in digital assets.
Changpeng Zhao, the CEO of the company, stated on Twitter that “an exploit” in the system caused an increase in the manufacturing of the currency used only by the exchange and added, “The current effect estimate is over $100m.”
“The problem is now under control.
Your money is secure.
We apologise for the inconvenience and will give you further information as needed,” he wrote.
Although it is one of the largest robberies in bitcoin history, the massive loss of more than $500 million from the Axie Infinity blockchain game earlier this year still dwarfs it.
As investors utilise “cross-chain bridges” to transfer funds from one blockchain to another, scammers are increasingly taking advantage of these flaws.
The largest blockchain is bitcoin, but there are many of others. Blockchains are digital ledgers that contain information about transactions.
Assuring clients that it had been resolved, Changpeng Zhao said that the theft used “an exploit on a cross-chain bridge, BSC Token Hub”.
According to the Reddit conversation, between $100 and $110 million was taken, and $7 million had already been recovered.
Bridges were also abused in the Axie Infinity theft and another robbery of over $200 million on the cryptocurrency business Nomad last month.
Bridge vulnerabilities, according to Chainalysis, a crypto research company, have been responsible for almost $2 billion in thefts so far this year.
Bridges “tend to gather significant quantities of locked assets on various blockchains, many of which may not have sophisticated security or auditing cultures because to their relative obscurity,” according to Elliptic, another analytical firm, in its crime report this week.
This has historically made bridges a desirable target for hackers, it continued.