Binance Helping Turkey’s Biggest Crypto Exchange (BtcTurk) After $5m in Funds Got Stolen

In return for crypto-related threats and malicious attacks, Turkey’s largest DeFi exchange platform, BtcTurk, got its protocols compromised by hackers who stole millions in various virtual currencies.

This incident happened despite the decrease in cyber crimes reported this year compared to previous years. It is worth noting that 2022 witnessed the highest number of DeFi and crypto hacks, with over $3.8 billion in looted funds.

Binance, the world’s renowned crypto trading and exchange platform, rushed to assist BtcTurk in its investigation and resolution. How did the story unfold? What will happen to BtcTurk’s coin holders? Let’s find out.

What Happened?

Turkey’s biggest crypto exchange, BtcTurk, announced on Saturday, June 22nd, that a cyber attack targeting its hot wallets had occurred. The hackers compromised the platform’s 10 online-stored cryptocurrencies, stealing over $5 million.

The company stated that the compromised assets represent a minor share of the entire storage and that the remaining stored crypto assets and coins in cold wallets are safe.

In a shared announcement, the exchange stated that “Btcturk’s financial strength is far above the affected amounts, ensuring user assets are not impacted.”.

As a precautionary measure, the exchange temporarily paused all deposit and withdrawal requests for all ERC-20 crypto assets based on the Ethereum network, where the damage took place.

About BtcTurk

BtcTurk was founded in 2013 as a cryptocurrency exchange and trading platform. In July 2013, it facilitated the first Bitcoin purchase using the Turkish Lira, and the company currently serves over 5 million users.

Relying on cryptocurrencies for online transactions and corporate payments increased significantly in Turkey due to spiking inflation rates that affected the national economy and currency. This makes the country the fourth-largest crypto market in the world.

The company is legally registered in the Istanbul Chamber of Commerce. It is operated by Elliptik Software and Trade Inc., and it has sophisticated security systems and frameworks that comply with Turkish Republic Virtual Marketplace Legal standards.

Binance Assisting BtcTurk Recovery

Binance offered to help BtcTurk investigate the incident, which saw the suspension of the $5.3 million stolen funds until a detailed inspection and reporting were completed. “Our investigations & security teams work around the clock as part of our proactive efforts to protect the ecosystem from bad actors,” said Richard Teng, Binance’s CEO.

On Saturday 23rd, the exchange announced that all operations on the ERC-20 network have been reinstated, and users can access their assets and withdraw or deposit funds in the ETH blockchain.

This incident occurred less than three weeks after a Swiss crypto exchange, Lykke, was hacked, and $22 million was embezzled.

Final Takeaways

While a full report is still pending, analysts and wallet whale trackers started speculating on the wallet addresses responsible for the BtcTurk crypto attack that dried over $5 billion from hot wallets.

Despite the declining crypto crimes this year so far, the exchange has suffered one of the most significant hacks on the platform and one of the biggest attacks this year. This event signifies the importance of solid measures and protocols to prevent such attacks. It also highlights the role of cold wallets in keeping digital assets safe and away from the Internet.