Changpeng Zhao, the CEO and founder of Binance, informed on Twitter that they froze/recovered $450,000 of the Curve stolen funds. A few days ago, the popular decentralized exchange Curve.Finance, got hacked by $570,000. The information was published by CZ on Twitter a few hours ago, giving hope to users that lost funds from this protocol. In order for users to get their funds back, it might be necessary for Binance to perform further controls and checks in the next few weeks.
Binance Recovered Funds from Curve’s Recent Hack
Binance was able to freeze/recover $450,000 in funds that were stolen from Curve.Finance’s recent hack. This represents more than 83% of the stolen funds. As per Changpeng Zhao, the hacker kept on sending funds to Binance in different ways, this is how the exchange was able to recover the funds.
Curve.Finance experienced an issue with their DNS, which was hijacked a few days ago. In order for the hacker to get control of the funds, he put a malicious contract on the home page, as explained by Changpeng Zhao. Then, when the victim approved the contract on the official Curve.Finance page, the funds were drained from the wallet. The whole attack resulted in close to $570,000 that users lost by engaging with this compromised malicious smart contract.
About the recovery, the CEO of Binance wrote on Twitter:
“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. 😂”
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 is now working side by side with Binance in order to return users’ funds as soon as possible. As per a recent Tweet, they said that they could get as much as 100% of the funds recovered. They are still discussing how to return the funds while LE investigates the hack.
The cryptocurrency market has been affected many times over the last few years by hacks and attacks on exchanges and different decentralized finance protocols. These attacks have been one of the main issues affecting the reliability of the whole cryptocurrency industry.
Nevertheless, there have been many attempts in order to improve the security of different protocols and the way in which people interact with different Bitcoin and crypto applications online and offline.
Users must be very careful when they engage with different protocols. As we can see in this case, the attacker was able to get access to the front-end of Curve.Finance’s official site. Even if you are using their official site, you can get affected by these types of hacks. Therefore, it is very important to always confirm and verify which is the contract that you are interacting with before approving a transaction, as it could be very costly.