Binance Ceo , Changpeng Zhao “CZ” in a Tweet informed that $450K of the stolen funds from the exchange liquidity pool Curve Finance a few days ago. The Decentralized Finance Protocol had a portion of its front end compromised which left the platform vulnerable for a few hours. The chink in the armor was utilized to execute the hack.
Hackers Sought To Launder Stolen Funds Through Binance
The vulnerability in the security of the platform was utilized by the hackers to funnel off about $570,000 from the DeFi protocol. On Friday through a series of tweets, CZ said that 83% of the stolen funds have been traced and blocked. The Binance head also said that it will work with the law enforcement and recover and return the funds to its rightful owners.
The CEO tweeted,
‘Binance froze/recovered $450k of the Curve stolen funds. We are working with LE [law enforcement] to return the funds to the users.’
The hackers sent the funds to Binance in the guise of different accounts. However the trail was traced and finally the stolen funds were identified and the exchange froze the accounts.
Fixed Float which is a cross chain exchange also revealed that it has identified $200,000 from Curve’s stolen funds and subsequently froze 112 ether ($200,000) that was stolen in the exploit.
The crypto currency which is based on the decentralized ledger format is pretty robust to such exploits as compared to attacks in the present financial regimens. However, of late there has been an increase in such attacks. The DEX is not fully decentralized and therefore this chink in the security was utilized by the hackers and sought to launder their funds.
“Our security department has frozen part of the funds in the amount of 112 ETH,” Fixed Float said on Twitter.
Curve is however has not responded on the recovery of the stolen funds.