Binance Hack May Involve Private Key Misuse Rather Than Theft
Blockaid CEO Ido Ben-Natan suggests the recent Binance security incident involved transaction-signing infrastructure manipulation.
Binance Hack May Involve Private Key Misuse Rather Than Theft
Blockaid CEO Ido Ben-Natan suggests the recent Binance security incident involved transaction-signing infrastructure manipulation.
Investigating the Binance Hack Infrastructure
Blockaid CEO Ido Ben-Natan suspects that attackers manipulated Binance's transaction-signing infrastructure during the recent security breach, drawing parallels with the previous Bybit hack. According to crypto research firm Kairos Research, suspicious activity began when an external address used Ethereum's EIP-7702 account-delegation mechanism to attach executable code to a Binance hot wallet.
Stablecoin issuers and crypto firms quickly mobilized in response to outflows approaching $6 billion. Major industry players froze more than $2.6 billion in digital assets linked to the suspected breach, aiming to restrict the movement of compromised funds and support ongoing investigations.
Stablecoin Issuers and Protocols Freeze Assets
Tether CEO Paolo Ardoino announced that the company froze more than $1.567 billion in USDT linked to the incident. Circle CEO Jeremy Allaire confirmed that his firm froze approximately $823 million in USDC while coordinating with law enforcement.
Additional freezes included roughly $200 million from Ripple, $27 million in USD1 from World Liberty Financial, and over $8 million in PAX Gold from Paxos. Meanwhile, decentralized finance protocol Aave paused most of its Ethereum lending markets as a precaution after the attacker deposited and borrowed funds.
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