The cryptocurrency world was shaken in 2022 when a bad actor perpetrated a $570 million hack on the Binance exchange. The hack would go on record as one of the largest and most high-profile cyber attacks in the world. As a result of the hack, Binance would have to temporarily suspend their BNB (Binance coin) token in order to contain the issue.
The international securities and cryptocurrency law firm Levin Law, P.A. (“Levin Law”) is investigating and accepting claims related to the Binance hack. Cryptocurrency investors who sustained losses related to the hack are strongly encouraged to contact Levin Law managing partner and founder Brian Levin at (305) 402-9050 or via email at contact@levinlawpa.com to schedule a free case evaluation.
What Is Binance?
Binance Holdings Ltd. (“Binance”) is the world’s largest cryptocurrency exchange. Users are able to buy, sell, and trade popular cryptocurrencies such as Bitcoin as well as altcoins, including Ethereum and Binance coin (BNB).
Binance coin is the cryptocurrency behind the BNB chain ecosystem. Launched in 2017, days before the Binance exchange opened, it remains one of the most popular altcoins.
How Did the Binance Hack Occur?
In October 2022, the Binance exchange experienced a devastating hack after an unauthorized third party discovered a vulnerability in the cross-chain bridge of the system. By exploiting the flaw, the hacker was able to create and withdraw an extra two million Binance coins (BNB). The coins, worth an estimated $570 million, were created out of “thin air,” as explained by Forbes.
Hackers utilized a bug in the smart contract, which allowed them to forge transactions and withdraw the funds. As a result of the hack, Binance asked validators to suspend transactions on the BNB Smart Chain (BSC). The efforts helped to contain the issue and prevent further losses. It was initially believed that only around $100 million was stolen in the security breach, but the amount rose significantly as it was determined that hackers were able to transfer larger amounts of Binance coin.
Is Cryptocurrency a Safe Investment?
Since its inception, hackers have been targeting cryptocurrency exchanges attempting to exploit vulnerabilities in their security systems. In 2022 alone, hackers successfully secured around $3.77 billion worth of cryptocurrency. While the amount is shocking, it represents an over 50% decrease in the amount of hacking-related cryptocurrency losses compared to the previous year. It is estimated that in 2021 crypto investors saw $8 billion worth of hacking-related losses.
Hackers continue to target any vulnerabilities in a platform's systems. One of the most common problems is with cross-chain bridges. Cross-chain bridges allow investors to move cryptocurrency between exchanges. Unfortunately, many cross-chain bridges contain flawed engineering making them prime targets for cybercriminals. TechCrunch estimates that only around 5% of cryptocurrency losses were recovered in 2022.
What Were Some of the Largest Cryptocurrency Hacks?
Cryptocurrency holders have seen billions of dollars lost to hackers over the past few years. By 2022, bad actors determined how to manipulate the flaws in Binance and other exchanges to perpetrate these crimes. According to Investopedia, hacking continues to hinder the adoption of cryptocurrency in mainstream markets.
The largest cryptocurrency hacks to date, as reported by Investopedia:
- Ronin Network ($625 million)
- Poly Network ($611 million)
- FTX ($600 million)
- Binance ($570 million)
- Coincheck ($534 million)
- Mt. Gox ($473 million)
- Wormhole ($325 million)
- Bitmart ($196 million)
To secure your digital assets, it is recommended that you use multi-factor authentication and store cryptocurrency in a wallet that is offline.
What to Do If You Have Your Cryptocurrency Hacked
If your Binance account or other cryptocurrency exchange is hacked, you need to act fast to protect your assets. Report the fraud immediately and change the credentials on your account to prevent further losses. Depending on the situation, you might be entitled to take legal action. To determine whether you have a valid claim, you need to speak with an attorney.
An attorney can review your case and help decide the best course of action. It is critical that you do not wait, as it may become more challenging to recover your cryptocurrency losses. If the crypto exchange you were using failed to protect your assets, they might be held liable for your losses. Consulting with an attorney can help you understand your rights and responsibilities after an illegal transaction.
Contact Levin Law for a Free Case Evaluation
Over $150 Million Recovered, Including Millions for Victims of Cryptocurrency Hacks
If you have experienced losses related to the Binance hack or another crypto cyberattack, contact Levin Law at (305) 402-9050 or via email at contact@levinlawpa.com. Aggrieved crypto holders are offered a free, no-obligation case evaluation.
Levin Law founder and managing partner Brian Levin has recovered over $150 million on behalf of clients worldwide. Most cases are handled on a contingency fee basis, meaning that clients are not obligated to pay Levin Law attorney fees unless money is recovered on their behalf.
