- $27 million in Tether was stolen from a wallet connected to the Binance deployer, with the funds being converted to Ether and subsequently to Bitcoin.
- The illicit funds were transferred through FixedFloat and ChangeNow exchanges and then bridged to Bitcoin via THORChain.
Significant Theft Incident in the Crypto Sphere
A sophisticated cyber heist led to the theft of $27 million worth of Tether (USDT) from a wallet linked to the Binance deployer. The incident, analyzed by blockchain expert ZachXBT, unveils the complexities of cryptocurrency thefts and the use of various networks to mask illicit activities. Post-theft, the stolen Tether was converted to Ether (ETH) and subsequently funneled through exchanges FixedFloat and ChangeNow. To further obscure the trail, the funds were then bridged to Bitcoin (BTC) utilizing the THORChain bridge.
The Binance Connection
On-chain data has revealed that the compromised wallet, which suffered the multi-million-dollar loss, had previously received Ether transfers from the Binance deployer in 2019. A deployer wallet, typically employed for creating smart contracts, indicates a technical and sophisticated nature of the involved entities. This connection to Binance, a leading global cryptocurrency exchange, highlights the vulnerabilities and potential targets within the crypto ecosystem.
The Broader Context: THORChain and Exchange Vulnerabilities
The recent incident places THORChain in the spotlight once again, marking it as a recurring platform in hack-related activities. Earlier in the year, hackers responsible for a $35 million theft from Atomic Wallet utilized THORChain for concealing their stolen assets. Additionally, THORSwap had to temporarily halt its operations due to FTX hack-related trades, indicating the increasing use of decentralized platforms by malicious actors for laundering purposes.
Exchange Security: An Ongoing Concern
The hacking incident at Poloniex, where $114 million was stolen from the exchange’s hot wallets, underscores the ongoing security challenges faced by cryptocurrency exchanges. Hot wallets, being online and more accessible, are particularly susceptible to such attacks. The continuous emergence of these incidents emphasizes the need for enhanced security measures and vigilance in the crypto industry.
Looking Forward: Security and Response
As the details of this elaborate theft unravel, Binance’s response and potential security improvements are awaited. The incident not only affects the immediate parties involved but also serves as a cautionary tale for the entire cryptocurrency market, highlighting the need for advanced security protocols and vigilant monitoring of network activities. The crypto community and stakeholders will be closely monitoring the developments and responses to this significant security breach.
