The largest cryptocurrency exchanges lost more than $ 7 million due to a hacker attack, which was warned about earlier

Cryptocurrency exchanges Binance US and Bittrex have suffered from a hacker attack, losing almost $ 2 million. A few days ago, the same situation occurred with the FTX platform — the exchange lost $ 6 million. WuBlockchain wrote about a new fraudulent scheme last week, but the exchanges did not respond to the warning.

In addition to FTX being attacked by API KEY leak, @x_explore_eth found that @BinanceUS was also attacked similarly, 1053 ETH was stolen, SYS/USD pair was used for contra trading; and the attack against Bittrex, 301 ETH was stolen, NXT/BTC pair was used. https://t.co/KCBmJFRAIE https://t.co/6fz0tQBPHQ

— Wu Blockchain (@WuBlockchain) October 24, 2022

According to WuBlockchain, hackers managed to steal 1053 ETH (over $ 1.4 million at the time of writing) from the American division of the largest bitcoin exchange Binance. The fraudsters used compromised API keys to carry out the attack. As for Bittrex, hackers stole 301 ETH (over $ 405,000 at the time of writing) using the NXT/BTC pair.

on October 21, an FTX user noticed that someone had traded the DMG control token more than 5000 times while using his 3Commas API account. This allowed hackers to steal $ 1.6 million worth of BTC, ETH, FTT, and other digital assets from the user’s account. However, at the time, FTX did not take any action to prevent such attacks, and a few days later, the amount of losses reached $ 6 million.

Probably, if both FTX and other platforms had taken precautions immediately and started to understand the situation, further losses could have been avoided. Earlier, FTX CEO Sam Bankman-Fried addressed the attackers with a proposal to return 95% of the stolen funds (about $ 5.7 million) within a day to avoid prosecution. It was Benkman-Fried who proposed the «5−5 standard «- paying hackers a reward of $ 5 million or 5% of the stolen crypto assets to minimize the consequences of hacks and exploits. So far, hackers have not responded to this offer.