Tech

Binance Hackers Made $569 Million in Crypto — Then It Gets Complicated


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Another day, another major hack in the crypto industry. But this is strange.

Binance disclosure Friday, unidentified hackers exploited a vulnerability in the company’s BNB Chain crypto token, allowing them to mine 2 million of the company’s decentralized tokens worth a total of 569 million dollars. In other words, that money wasn’t actually stolen from Binance, but fabricated out of the box due to a vulnerability in Binance’s cryptocurrency security. Anyhow, the hack seems poised to flood the market with BNB and thereby reduce its value to its legitimate holders, while allowing hackers to take half a billion dollars.

Unfortunately for those hackers, even they don’t seem prepared for their sudden blow. Cryptocurrency tracing company Elliptic Find that they quickly trade a small fraction of their tokens for a variety of other cryptocurrencies. That allowed them to make around $53 million from Ethereum-based tokens. But the other cryptocurrencies they traded their BNB with, like Tether and USDC, are more centrally controlled, allowing funds to be frozen. Binance, meanwhile, has managed to temporarily close its BNB blockchain to prevent the newly mined coin by hackers from moving any further. “So we have a very sophisticated mining that managed to raise $569 million,” said Thibaud Madelin, Elliptic’s research lead. “Honestly, what followed was a total disturbance.”

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