- Changpeng Zhao, CEO of Binance, revealed that the crypto exchange managed to recover and freeze $450,000 USD of funds stolen from Curve.
- This represents 83% of the funds lost due to an exploit which allowed a hacker to cause $570,000 US worth of Ethereum (ETH) to be stolen.
Earlier this week, Curve Finance warned to its users on Twitter that its official website had suffered an exploit. They basically suffered from a frontend attack where the nameserver was compromised and caused $570,000 US worth of Ethereum (ETH) to be stolen that belonged to the users.
Don’t use https://t.co/vOeMYOTq0l site – nameserver is compromised. Investigation is ongoing: likely the NS itself has a problem
—Curve Finance (@CurveFinance) August 9, 2022
The hackers managed to clone the logs on the server and thereby imitate the original server. In this way, users were being redirected to a page specially designed by the attacker who managed to trick users into believing that it was the original domain and will use the site as usual.
Binance freezes and recovers assets
People losing money as a result of a hacker is not a new situation at all. Hackers have always managed to get the necessary tools and strategies to capture other people’s funds. However, it must be remembered that this does not happen in the crypto ecosystem.
However, at least for this time, the tragedy has ended with a happy ending. ¡Binance managed to recover more than 80% of the committed funds!
According to Changpeng Zhao, the Curve Finance hacker attempted to send the funds to the crypto exchange in various ways, and Binance was still able to detect them. Thus, Binance froze the funds and is currently working to return it to its rightful owners. However, they did not indicate how long it might take.
Binance froze/recovered $450k of the Curve stolen funds, representing 83%+ of the hack. We are working with LE to return the funds to the users. The hacker kept on sending the funds to Binance in different ways, thinking we can’t catch it. 😂#SAFU https://t.co/Ekea9moeAw
— CZ 🔶 Binance (@cz_binance) August 12, 2022
Curve Finance responded cheerfully to the news, but gender the question why can’t funds be returned to users all at once while investigations are running?
Exchanges support asset recovery
It is worth mentioning that Binance was not the only crypto exchange to detect the hacker’s activity. FixedFloat, another crypto exchange, captured and frozen 112 ETH after the community detected that part of the funds were directed to said platform.
This is not the first time that the crypto community has come together to obtain and return the funds that were stolen. In fact, just this week, researchers and white hat hackers managed to return $32.6 million worth of USDC, USDT and other crypto to Nomad, which had suffered a $190 million US exploit. Still the number of hacks that take place each month is impressive.
According to chain analysis“$2 billion worth of cryptocurrency has been stolen in 13 separate cross-chain bridge hacks, most of which were stolen this year. Bridge attacks account for 69% of total funds stolen in 2022 so far”.
You might be interested in:
