Binance, a popular cryptocurrency exchange, is reportedly collaborating on the investigation of a cyber attack on Turkish crypto exchange BtcTurk. Binance CEO Richard Teng stated that over $5 million in stolen funds have been frozen as part of the ongoing investigation.
In a post on June 22, Teng mentioned that Binance is working closely with BtcTurk to uncover the details of the attack and secure the funds. The attack targeted the hot wallets of BtcTurk, which are online crypto storage systems more susceptible to hacking compared to offline cold storage.
BtcTurk confirmed that only a fraction of the balances in 10 cryptocurrencies stored in their hot wallets were affected, assuring users that the majority of assets in cold wallets remain safe. The exchange, which boasts over five million users, addressed the incident in a statement released on June 22.
Teng reassured his followers on X that Binance’s security teams are diligently investigating the matter and will provide updates as new information becomes available. The exchange’s proactive efforts to safeguard the cryptocurrency ecosystem from malicious actors have been commended by blockchain investigator ZackXBT.
While Binance receives praise for its swift response to security incidents, BtcTurk’s CEO Özgür Güneri has yet to make a public statement on the matter. The incident follows a similar exploit on Switzerland-based crypto exchange Lykke, which led to a temporary halt on withdrawals.
Blockchain security researcher SomaXBT criticized Lykke’s handling of the security breach, accusing the team of trying to conceal the loss of $19.5 million in crypto assets. Cointelegraph has reached out to BtcTurk for further comments but has not received a response at the time of publication.
In related news, concerns have been raised about the classification of ‘Bitcoin Layer 2s’ and their implications for the cryptocurrency ecosystem.