Binance Blocks $12.5 Million Cryptocurrency Hack Attempt

Leading cryptocurrency exchange Binance recently demonstrated its commitment to security by thwarting a major hacking attempt. CEO Changpeng Zhao (CZ) revealed that the company managed to freeze a significant portion of funds that were stolen from its client executives during a business trip in Montenegro. The executives were compelled to drain their crypto wallets, losing about $12.5 million in the process.

What You Need to Know

• Binance CEO Changpeng Zhao reports successful freezing of nearly $12.5 million in stolen funds.
• The stolen cryptocurrency, mostly Tether (USDT), was tracked to a Tron wallet.
• Binance froze 94.4% of the stolen funds, totaling $11.8 million.

Binance’s quick response was pivotal in this success. The company used advanced on-chain tracking techniques to trace the stolen crypto, leading to the freezing of $11.8 million. This rapid action, which secured 94.4% of the total stolen funds, underscores Binance’s capability to respond effectively to emergencies and protect user assets.

The exchange has a specific protocol for such incidents, allowing for a temporary courtesy hold on funds suspected to be stolen. Victims have a seven-day window to file a police report to ensure the continued freezing of these assets. This approach reflects Binance’s proactive stance in fighting cryptocurrency theft while providing support to its clients in challenging situations.

Further enhancing its security measures, Binance has introduced a new Web3 wallet designed for improved self-custody of cryptocurrencies. Integrated into the Binance app, this innovative wallet uses a unique method of safeguarding digital assets. It divides a user’s private keys into three parts, with the user retaining control over two, thereby increasing security and embracing the self-custody trend in the cryptocurrency world.

CZ also discussed the differences in security between crypto and traditional fiat currencies. He highlighted the various options in the crypto sphere, from the traceability and freezing capabilities on centralized exchanges to the more opaque nature of cryptocurrencies like Monero (XMR).