A wallet linked to the prominent cryptocurrency exchange Binance has fallen victim to a security breach, resulting in a substantial loss of $27 million in Tether stablecoins (USDT). As reported by on-chain investigator ZachXBT, the breach has raised concerns within the crypto community.
ZachXBT Reveals the Move of the Perpetrators
ZachXBT’s analysis reveals a strategic move by the perpetrators, who quickly converted the stolen USDT funds into Ethereum (ETH). Subsequently, the illicitly acquired assets were further laundered through THORChain, a decentralized liquidity protocol, ultimately being transformed into Bitcoin (BTC).
Also, the investigator revealed that the wallet had received funds via a withdrawal from Binance a week ago. Likewise, in May 2019, the same wallet received funds from an address marked by Etherscan, a Binance smart contract deployer.
Meanwhile, the incident sheds light on the evolving tactics employed by hackers in the crypto space, showcasing their adeptness in navigating through various digital assets to obfuscate the origin of stolen funds. However, the $27 million loss not only impacts Binance but also raises questions about the overall security infrastructure within the broader cryptocurrency ecosystem.
Investors and users alike may become more cautious as they witness the vulnerabilities within these platforms. Although, Binance has yet to release an official statement regarding the breach and the subsequent loss.
ZachXBT’s Influence in the Crypto Space
Over the years, ZachXBT has dedicated time and expertise to uncovering fraudulent activities, identifying scams, and shedding light on suspicious transactions. His work helps protect investors, prevent illicit activities, and foster a more transparent and trustworthy environment for participants in the crypto industry.
In February, ZachXBT assisted in investigations that helped in the convictions of two people associated with the Platypus hack. As such, the crypto community has demonstrated its unwavering support for ZachXBT, as several prominent industry executives stepped forward to donate and express their admiration for his work.
Notably, Changpeng Zhao, CEO of Binance, publicly praised ZachXBT, accompanying the endorsement with a pledge of $50,000 from the exchange.
Growing Trends of Security Attacks
With the rising popularity of digital assets and the subsequent increase in their value, malicious actors are constantly seeking opportunities to exploit vulnerabilities.
A few months ago, Hong Kong’s headquartered cryptocurrency exchange CoinEx was attacked and over $27 million in digital assets including ETH, Tron (TRX), and Polygon (MATIC) were siphoned from the platform’s wallets.
Meanwhile, in the first half of 2023 alone, the crypto industry has recorded around $656 million loss owing to hacks, scams, and rug pulls.