Hackers Steal $27 Million Worth of USDT from Binance Hot Wallet: Security Risks in Cryptocurrency Industry

Introduction

Hackers have reportedly stolen more than $27 million worth of the top stablecoin USDT from a Binance hot wallet over the weekend. The stolen funds were quickly converted to Ethereum (ETH) and then transferred to instant exchanges. The hackers also used the decentralized cross-chain liquidity protocol THORChain to bridge to Bitcoin (BTC).

Details

According to on-chain researcher ZachXBT, the victim's address was connected to a Binance deployer wallet, which is used to generate smart contracts. The stolen USDT was swapped for ETH and transferred to instant exchanges like FixedFloat or ChangeNow. The hackers also utilized THORChain to bridge to BTC.

ZachXBT explains that the hackers will likely deposit the funds to a mixer or send them to a sketchy service to launder the money. Off-chain trades, such as over-the-counter (OTC) trades, are common for taking large sums off-chain after the funds have been laundered.

The impacted Binance wallet was created in late 2021 and received the stolen USDT from two Binance addresses earlier this month. USDT is the top stablecoin by market cap and is issued by Tether, aiming to maintain a 1:1 peg to the US dollar.

Recent Hacks

This incident follows a recent hack on the crypto exchange Poloniex, where a hacker exploited the platform and stole $125 million worth of various cryptocurrencies, including ETH, Tron (TRX), and BTC.

Conclusion

The theft of $27 million worth of USDT from a Binance hot wallet highlights the ongoing security risks in the cryptocurrency industry. It serves as a reminder for individuals and businesses to remain vigilant and take necessary precautions to protect their digital assets. As the popularity of cryptocurrencies continues to grow, it is crucial to stay informed about the latest security threats and implement robust security measures.

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Disclaimer: This article is for informational purposes only and should not be considered investment advice. Readers should conduct their own research and exercise caution when dealing with cryptocurrencies and digital assets.