Binance Assists BtcTurk Amid Cyber Attack and $54M AVAX Breach

BtcTurk halts crypto deposits and withdrawals after a cyber attack compromises hot wallets holding 10 cryptocurrencies.
Binance aids BtcTurk’s investigation, freezing $5.3M in stolen funds, as $54M AVAX sale links to breach.
Crypto adoption rises in Turkey amid inflation, with new tax proposals and retail banks supporting digital asset transactions.

On June 22, BtcTurk, one of Turkey’s leading cryptocurrency exchanges, experienced a cyber attack. The breach resulted in unauthorized access to hot wallets containing balances of 10 different cryptocurrencies. In response, BtcTurk has halted all cryptocurrency deposits and withdrawals as a precautionary measure.

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Cyber Attack Details

The cyber attack on BtcTurk led to unauthorized access to some of its hot wallets, impacting balances across multiple cryptocurrencies. The exchange’s cold wallets, which hold the majority of its assets, remain secure and unaffected by the breach. BtcTurk assured users that its financial stability exceeds the amounts impacted, ensuring that user assets are protected from losses.BtcTurk has launched a thorough investigation into the incident, collaborating with relevant authorities to uncover the perpetrators. Binance is assisting BtcTurk with the investigation and has frozen over $5.3 million in stolen funds. Binance’s Head of Regional Markets, Richard Teng, stated that their security teams are working around the clock to protect the ecosystem from bad actors and will provide further updates as the investigation progresses.

Impact on AVAX

On the same day as the attack, approximately $54 million worth of AVAX was sold. The AVAX originated from the transfer of X-avax1qsnptt6yxnwmh8up7xn5u3sajz37lmyv8u3dmu on the Avalanche-X chain and is believed to be linked to a Turkish exchange. The exact connection between this transaction and the BtcTurk breach is still under investigation.

The incident comes amid a period of rising cryptocurrency adoption in Turkey, driven by soaring inflation and a depreciating Lira. In response to economic challenges, Turkish lawmakers are working to replenish national finances through measures such as overhauling the tax system. A proposed 0.03% tax on crypto transactions is expected to generate approximately 3.7 billion Liras in annual revenue.

Retail Banking Support for Crypto

Despite regulatory changes, retail banking institutions in Turkey are increasingly supporting digital asset transactions. Garanti BBVA Digital Assets, a subsidiary of Garanti BBVA Financial Technologies, recently launched a crypto wallet service on its mobile platform. This service, currently in beta, allows users to trade Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC).

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Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.