Turkish cryptocurrency exchange BtcTurk has reported a breach affecting 10 of its hot wallets. The attack, which was discovered following unusual Avalanche (AVAX) token transfers on Saturday, has sent ripples through the crypto space.
In the report, BtcTurk promptly addressed the situation, assuring users that the majority of its assets remain secure in cold storage. The exchange emphasized its continued solvency, aiming to allay concerns among its user base.
However, Binance CEO Richard Teng announced via X that Binance has successfully frozen over $5.3 million of the stolen funds, demonstrating a rapid response to the hack.
Blockchain analyst ZachXBT provided further insights, revealing a suspicious transfers of approximately $54 million in Avalanche tokens were likely linked to the attack. The analyst’s investigation showed that the funds were moved to exchanges such as Binance and Coinbase using THORChain, before being converted to Bitcoin and withdrawn to separate wallets.
ZachXBT also suggested a potential connection between the BtcTurk incident and a separate attack on online casino Sportsbet which reportedly lost an estimated $3.5 million to the same threat just hours before the BtcTurk breach.
In response to the breach, BtcTurk has implemented immediate security measures, including the suspension of all cryptocurrency deposits and withdrawals. The exchange is actively cooperating with relevant authorities to thoroughly investigate the incident and enhance its security protocols.
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