Some of the funds stolen by hackers from cryptocurrency exchange Cryptopia were sent to Binance. The trading platform confirmed this information and froze the recipient accounts.
Yesterday, a Twitter user nicknamed @ShaftedTangu discovered that some funds stolen as a result of Cryptopia’s hack surfaced on certain Binance accounts.
— 🐒🐵I Dream Of Alts🐵🐒 (@ShaftedTangu) January 16, 2019
The said accounts reportedly received roughly $7 500 in Metal (MTL), $6 750 in KyberNetwork (KNC), $7 181 in OmiseGO tokens (OMG) and $8 724 in EnjinCoin (ENJ). The hackers were attempting to launder $30 000 in total.
Changpeng Zhao, CEO Binance, has confirmed the said information and reassured that Binance team has already frozen “some funds”. He tweeted on the matter:
“Just checked, we were able to freeze some of the funds. I don’t understand why the hackers keep sending to Binance. Social media will be pretty fast to report it, and we will freeze it. It’s a high-risk maneuver for them.”
Zhao’s tweet gave rise to mixed reactions in the crypto community. For instance, one user expressed his puzzlement about CEO Binance’s reference to “social media” as a means of tracking suspicious transactions:
This raises some big questions. 🤔
How is that possible with modern blockchain analysis? 🧐
— Sir Bitlord ❇️ (@Crypto_Bitlord) January 16, 2019
Changpeng Zhao’s response was the following:
“It’s quite easy to generate a brand new address. We (and no one) recognize every transaction out there. We already have very in-depth and detailed blockchain analysis.”
Yet, the question remains: if a regular Twitter user has been able to detect the transaction in question, how, and more importantly – why did Binance miss it?
On January 16, Binance has entered the European crypto market by launching a cryptocurrency trading platform on the island of Jersey. The initially available pairs include BTC/GBP, ETH/GBP, BTC/EUR and ETH/EUR.