Binance recovers $450k of the Curve Finance stolen funds: Changpeng Zhao
2 min read . Updated: 12 Aug 2022, 09:39 PM IST
Premium- Earlier this week, Curve. Finance fell prey to a cyber attack with its domain name system (DNS) being hijacked. Binance had stepped in by monitoring the situation at Curve.
Binance founder Changpeng Zhao on Friday said they have recovered the majority of the Curve stolen funds. Earlier this week, Curve. Finance fell prey to a cyber attack with its domain name system (DNS) being hijacked. The Cayman Islands-based cryptocurrency exchange had stepped in by monitoring the situation at Curve. Through his Twitter account, CZ said Binance recovered $470,000 of the Curve stolen funds, representing over 83% of the hack.
CZ said, "Binance froze/recovered $450k of the Curve stolen funds, representing 83%+ of the hack."
"We are working with LE to return the funds to the users. The hacker kept on sending the funds to Binance in different ways, thinking we can't catch it," CZ added with a laughter emoji.
The hacker had defrauded Curve investors by creating a DNS entry for the protocol, and releasing malicious contracts on the home page. When the victim approved the contract, their wallets were drained.
On August 10, CZ announced that so far the damage at Curve due to the hack is around $570,000.
The Binance founder also said that these hackers use GoDaddy for DNS, which is insecure. Adding he said, "No web3 projects should use that. Very susceptible to social engineering."
Earlier, Curve had announced that they have identified the issue and reverted it. The exchange requested investors to revoke any contracts on Curve immediately, if they have approved on August 10. It also directed investors to use curve.exchange until the propagation for curve.fi reverts to normal.
Curve is an exchange liquidity pool on Ethereum (like Uniswap) designed for extremely efficient stablecoin trading, low risk, supplemental fee income for liquidity providers, and without an opportunity cost.
Curve allows users (and smart contracts like 1inch, Paraswap, Totle and Dex.ag) to trade between DAI and USDC with a bespoke low slippage, low fee algorithm designed specifically for stablecoins and earn fees. Behind the scenes, the liquidity pool is also supplied to the Compound protocol or yearn.finance where it generates even more income for liquidity providers.
Binance is the world's largest cryptocurrency exchange in terms of daily trading volumes. It is also the world’s leading blockchain ecosystem, with a product suite that includes the largest digital asset exchange. BNB Chain is a community-driven blockchain software system with developers and contributors from all over the world. The official wallet of Binance, Trust Wallet, is a decentralized wallet where users can send, receive and store their digital assets, as per the website.
