Binance freezes $450,000 stolen from Curve Finance

The cryptocurrency exchange Binance froze $450,000 of funds stolen by attackers from the DeFi protocol Curve Finance, according to CEO Changpeng Zhao.

Binance froze/recovered $450k of the Curve stolen funds, representing 83%+ of the hack. We are working with LE to return the funds to the users. The hacker kept on sending the funds to Binance in different ways, thinking we can’t catch it. 😂#SAFU https://t.co/Ekea9moeAw

— CZ 🔶 Binance (@cz_binance) August 12, 2022

On August 9, unknown attackers compromised the frontend of Curve Finance. As a result, users lost assets worth $573,000.

PeckShield researchers traced that the attackers were transferring funds in ETH in parts to Tornado Cash, the FixedFloat protocol, and directly to Binance.

“The hacker continued sending funds to Binance in various ways, thinking we couldn’t catch him,” Zhao noted.

According to him, the exchange is working with liquidity providers to return the funds to the affected users.

The initial analysis of the Curve attack indicated that the protocol’s DNS system at an external provider had been poisoned. The DeFi team stressed that the incident underscored the urgent need to move to a decentralized ENS».

“They use GoDaddy for DNS, which is insecure. No Web3 projects should use that. Very susceptible to social engineering,” Zhao commented.

They use GoDaddy for DNS, which is insecure. No web3 projects should use that. Very susceptible to social engineering.

— CZ 🔶 Binance (@cz_binance) August 9, 2022

In April, Binance returned part of the hacker-stolen assets to the GameFi project Axie Infinity worth $5.8 million.

In March, unknown attackers hacked the game’s Ethereum-sidechain Ronin and exfiltrated approximately $625 million in ETH and USDC.

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