🚨 CRYPTO JUST FACED WHAT COULD BE THE BIGGEST SECURITY NIGHTMARE IN ITS HISTORY.
Nearly $6.3 BILLION in assets affected.
Binance has confirmed the scale of a massive security incident, triggering an unprecedented industry-wide emergency response.
Here’s where things get alarming.
The attacker reportedly exploited a vulnerability involving EIP-7702 delegation, allowing hot wallets to delegate control to smart contract code.
The incident began around 4:30 PM ET on Thursday, according to Arkham on-chain data.
Blockaid's preliminary assessment points toward possible signing infrastructure compromise, similar to the Bybit exploit. However, the exact attack mechanism remains unconfirmed.
The damage spread across Ethereum, Bitcoin and Tron.
And the attacker reportedly still holds more than 18,000 BTC.
But the crypto industry fought back.
Tether froze $1.567 BILLION in USDT.
Circle froze more than $800 MILLION in USDC.
Ripple, World Liberty, BitGo and Paxos also took action to freeze affected assets.
Arbitrum's Security Council froze approximately $30.5 MILLION.
Meanwhile, Aave suspended lending markets as a precaution after the attacker reportedly borrowed ETH using stolen USDT as collateral.
The market reaction was brutal.
Nearly $1.5 BILLION in crypto liquidations reportedly hit the market within 24 hours.
Bitcoin plunged below $77,000.
Ethereum dropped below $2,200.
ENA, UNI, LINK and PEPE reportedly suffered declines of approximately 10%–15%.
Binance suspended deposits and withdrawals while conducting security checks and coordinating with law enforcement.
But there's one major statement from Binance:
ALL USER LOSSES WILL BE COVERED.
The exchange says user funds are safe and promises a full post-mortem after its investigation.
This incident raises some serious questions about crypto security.
How safe are exchange hot wallets?
Can smart contract delegation become another major attack vector?
And how much power should centralized issuers have to freeze billions in crypto assets?
#Binance #CryptoSecurity #Bitcoin #Ethereum #CryptoNews
Nearly $6.3 BILLION in assets affected.
Binance has confirmed the scale of a massive security incident, triggering an unprecedented industry-wide emergency response.
Here’s where things get alarming.
The attacker reportedly exploited a vulnerability involving EIP-7702 delegation, allowing hot wallets to delegate control to smart contract code.
The incident began around 4:30 PM ET on Thursday, according to Arkham on-chain data.
Blockaid's preliminary assessment points toward possible signing infrastructure compromise, similar to the Bybit exploit. However, the exact attack mechanism remains unconfirmed.
The damage spread across Ethereum, Bitcoin and Tron.
And the attacker reportedly still holds more than 18,000 BTC.
But the crypto industry fought back.
Tether froze $1.567 BILLION in USDT.
Circle froze more than $800 MILLION in USDC.
Ripple, World Liberty, BitGo and Paxos also took action to freeze affected assets.
Arbitrum's Security Council froze approximately $30.5 MILLION.
Meanwhile, Aave suspended lending markets as a precaution after the attacker reportedly borrowed ETH using stolen USDT as collateral.
The market reaction was brutal.
Nearly $1.5 BILLION in crypto liquidations reportedly hit the market within 24 hours.
Bitcoin plunged below $77,000.
Ethereum dropped below $2,200.
ENA, UNI, LINK and PEPE reportedly suffered declines of approximately 10%–15%.
Binance suspended deposits and withdrawals while conducting security checks and coordinating with law enforcement.
But there's one major statement from Binance:
ALL USER LOSSES WILL BE COVERED.
The exchange says user funds are safe and promises a full post-mortem after its investigation.
This incident raises some serious questions about crypto security.
How safe are exchange hot wallets?
Can smart contract delegation become another major attack vector?
And how much power should centralized issuers have to freeze billions in crypto assets?
#Binance #CryptoSecurity #Bitcoin #Ethereum #CryptoNews
