The CEO of Binance, Changpeng Zhao, claims to have recovered 80% of the funds lost to the Curve attack.
On the 9th of August 2022, Curve finance, a top-board market maker and the center of the DeFi curve wars, came under attack.
The hacker used a DNS attack to gain access to Curve’s nameserver and switched the IP address for his own. The aim was to hijack Curve users and redirect them to a clone website. Using a malicious Smart contract, he or she drained the victim’s wallets of funds amounting to $570k.
This was brought to the knowledge of the public when CZ tweeted both about the attack and the financial damages to Curve’s users. Promising to continue monitoring the situation.
True to his words, in the early hours of Friday, August 12th, CZ went on Twitter to share some good news for the victims of the attack. He claimed that Binance froze and recovered $450k worth of stolen funds, about 80% of the total loss.
According to CZ, the hacker moved the funds through Binance differently but got caught. They are now working to reunite the stolen funds with their rightful owners, yet one has to ask.
This is what CZ had to say hours after the attack. He tweeted:
“They use GoDaddy for DNS, which is insecure. No Web3 project should use that. Very susceptible to social engineering.”
It is difficult to break a secure smart from the outside, so the DNS would be easier to hack.
With recent cyber-attacks on crypto projects, the future of Curve finance is far from certain. But here’s one thing that is certain – The Binance exchange will continue to give its best in fighting crypto crime.