Binance Halts $5 Million in Funds Linked to Turkish Exchange’s $54 Million Cyberattack

On June 22, 2024, Binance, the world’s largest cryptocurrency exchange, took decisive action to halt funds associated with a significant cyberattack on Turkish exchange BtcTurk. The attack specifically targeted ten of BtcTurk’s hot wallets following reports of suspicious transfers involving Avalanche tokens. In response, Binance swiftly froze over $5.3 million in stolen funds, effectively preventing further unauthorized transfers.

Turkey’s largest crypto exchange, BtcTurk, suffered a cyberattack that left a $54 million hole in users’ funds. The hackers successfully breached BtcTurk’s hot wallets, siphoning off a substantial amount of AVAX tokens. However, just as the hackers attempted to launder the stolen funds, Binance intervened.

Avalanche Tokens and the Cyberattack

Blockchain investigator ZachXBT conducted a timing analysis, revealing that approximately $54 million worth of Avalanche tokens were likely connected to the cyberattack. These funds were subsequently transferred to various exchanges, including Binance and Coinbase, using the THORChain protocol. The stolen funds were then converted into Bitcoin and moved to separate wallets. Notably, these large transactions coincided with the public disclosure of the attack by BtcTurk. Additionally, a blockchain researcher had previously identified the relevant Avalanche wallet as belonging to a Turkish cryptocurrency exchange.

Impact and Recovery

Following the cyberattack and subsequent transfers, the price of Avalanche experienced a temporary decline of approximately 10%. However, the token has since recovered about 5% of its value from its lowest point on Saturday. BtcTurk assured users that its cold wallets, which hold the majority of its assets, remain secure, and the company remains financially stable. Binance continues to assist BtcTurk in investigating the incident, emphasizing their proactive efforts to protect the ecosystem from bad actors.