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Crypto News

Major Hack Results in $27 Million Stablecoin Theft from Binance-Linked Wallet

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

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2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update

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A cryptocurrency wallet, recently connected to the exchange giant Binance, suffered a significant security breach, leading to the theft of $27 million in Tether (USDT). The hack was first identified and reported by renowned on-chain investigator ZachXBT.

ZachXBT’s analysis revealed that the compromised wallet underwent a severe attack on November 11, which led to the theft of its USDT holdings. The stolen stablecoins were rapidly converted to Ethereum (ETH) and then dispersed through a series of transactions using various services, including FixedFloat and ChangeNow. This kind of maneuver is a known method used by cybercriminals to obscure the origins of illicit funds. The hackers completed their operation by converting these assets into Bitcoin via THORChain, a decentralized liquidity protocol.

The origin of the funds in the targeted wallet makes the incident more intriguing. A week before the theft, the wallet received a substantial amount of USDT through a withdrawal from Binance. Additionally, in May 2019, the same wallet was linked to an address identified by Etherscan as a Binance smart contract deployer.

The recent security breach reflects a growing trend in cryptocurrency hacks and thefts. According to Certik’s Web3 Security Quarterly report for Q3 2023, the quarter has been marked as the most eventful in terms of security incidents, with losses exceeding $699 million across 184 different cases. This amount surpasses the total losses of the first two quarters of the year, highlighting a significant increase in such cybercrimes.

Notably, the North Korean state-affiliated Lazarus Group has emerged as a prominent threat in the digital asset space. The group has been responsible for major security breaches, particularly targeting Web3 personnel, leading to a confirmed loss of at least $291 million. The Lazarus Group’s strategy often involves sophisticated social engineering techniques to penetrate various security systems.

The report also pointed out that private key compromises were a major cause of the quarter’s financial damages, resulting in $204 million lost in 14 separate incidents. High-profile hacks involving platforms like Mixin and Multichain were among the most significant, contributing to $325 million in total losses. As the crypto industry continues to evolve, these incidents underscore the critical importance of robust security measures and vigilance in safeguarding digital assets.