The Crypto Cafe with Terence/Crandorz

Also to add from cz: binance did not borrow money, sell assets or raise money to cover the hack https://x.com/cz_binance/status/2117302637574144147?a=z5JH1j8KBwBa6o6zY9Q&s=46

Binance has already enabled withdrawals and have progressively opened withdrawals on all their assets. https://x.com/binance/status/2116744986096292263

Lastly, this is an industry-wide effort, and we are grateful to partners across the ecosystem who have moved quickly to help and support. We will weather this storm. Thank you for the support - and stay safe.

Hi everyone, firstly, I want to thank you all for the support. Difficult times like these are a great reminder how strong our industry is when we work together. We are grateful to our partners that acted quickly to freeze the hacked assets; to global law enforcement, who we’re working hand in hand with to seek justice; But most of all - we are grateful to our users for their patience and understanding. Rest assured that we are working non-stop to resolve this, to make the users whole, and live up to your trust. I want to be clear: WE ARE COMMITTED TO COVERING ALL HACKED LOSSES THROUGH OUR COMPANY FUNDS. Your assets are safe. The good news is that we are recovering stolen assets for users. Binance has reserved over $6.34B of company funds to cover the stolen assets. $5B of these funds are already held in the exact token assets that were impacted, such as USDC, USDT, BTC, ETH, BNB etc. I know many of you are still asking the same question: how can Binance actually prove that your assets were not affected? Let me be direct about the first point. We NEVER use any customer funds, so they are not impacted. What was affected in this incident was Binance's own hot wallet. User assets are held under Binance's established security architecture. The vast majority sit in cold wallets, and are only moved into a hot wallet when a user makes a withdrawal. One more thing I want to share. Binance has always been built for the long term. Most of what we earn from day-to-day operations is held in crypto assets. We have kept a lot of them in the company, and reinvested them — into the business, and into security. Because we believe in crypto, and in the long-term value of this industry. That is precisely why we are able to absorb a loss of this size, immediately, with our own money. We are working on the outstanding amount by buying the token assets through market and OTC channels. We will share more progress as soon as we can. If you, as a user, are concerned, we encourage you to check funds on your Binance accounts. Wait for our initial Proof of Reserve for public verification, which is targeting Monday. You can reach out to our customer service with any questions. Next, I want to give you an update on our understanding of the hack itself. Our tech and security teams are still deep in the investigations of the hack. This was not carried out by one person. Our initial investigation suggested that the security incident may have involved a compromised laptop, however our subsequent investigation has uncovered additional points of breach. This was a complex attack. The attacker also used a self-destruct mechanism that destroyed tooling and traces as they went, making it more difficult for us to trace and investigate. The attacker used a known multi-signature protocol EIP-7702, to obtain on-chain execution approval over a hot wallet. That delegation did not pass through our normal approval controls. That’s why we need to pause the withdrawal service to investigate, rebuild, and retest the entire infrastructure system. So what are we doing now? First, we are rebuilding the withdrawal service, and we are not switching it back on until it passes rigorous testing. We are very hopeful that users will be able to withdraw prior to our Sunday deadline, which is on track to be within 40 hours. Second, we are conducting a full security review across the entire company — endpoints, cloud, key management, signing. Everything. Third, we are completing the purchase of the remaining assets and will verify in our Proof of Reserves. We will be sharing a full Proof Of Reserves report by Monday, and we are hoping to give an initial view of Proof of Reserves before that. Fourth, we are working with law enforcement, blockchain intelligence firms, token issuers and other exchanges to trace and recover stolen funds. We will do everything within our power to ensure that these bad actors will be held accountable.

Latest: funds reserved to cover the incidents. Expect withdrawals to open within the next few days Binance has begun recovering affected assets for users and continues to work with law enforcement, issuers, blockchain intelligence firms and industry partners to trace, freeze and recover additional funds. The company has already publicly committed to cover losses through company funds in the prior announcement. Binance has already reserved over $6.34B of company funds to cover this incident. $5B of these funds are already held in the exact token assets that were impacted. We are completing the purchase of the remaining amount by buying token assets through market channels and OTC channels. We are doing this to match the format of the remaining token assets and address any asset shortfalls. This step can take longer because some tokens may have low liquidity and OTC settlement also takes time. We will share more progress as soon as we can. These figures do not include frozen or protected assets, which remain subject to ongoing recovery and verification. Currently, $3bn has been frozen, with thanks to our industry partners. We are working with partners and law enforcement to recover the frozen assets.We will continue to use company resources to cover confirmed shortfall and will provide further verified updates as recovery efforts progress. Ultimately, all user funds will be verified publicly through our Proof of Reserves. We will weather this storm. Thank you for the support. https://x.com/binance/status/2116121748555153621?a=3fpn4gUVrpmG7FBZDok&s=46

Bottom line if you have funds in binance: Nothing you can do at the moment. Even i have money that is stuck in the platform at the moment. Withdrawals paused atm since the hack happened around 5-6 am SGT (UTC+8) One thing all my years of experienced taught me is diversify your funds. so worse case scenario binance becomes insolvent then i lose a max of 10% of my portfolio (but definitely a big hit still in that sense). Majority of my funds still on cold wallets atm. BUT THE GOOD NEWS…. Binance mention using their SAFU funds to cover this hack and users would not be affected. But all in all, this is the craziest hack we’ve seen so far and why the market has been dumping

Losses included over $5.6b in these currencies

Crazy and developing story. Binance hacked for over $5B. Initial investigation reported by binance here: https://x.com/binance/status/2115993361517891592?a=1dapSDneVIZo0YClBAY&s=46

Ledger responded to what happened with an article, and also in their latest conference. What they found was a criminal organisation that probably infiltrated part of their supply chain eespecially in the SEA region. Bottom line of the investigation: They stopped resellers from selling from now, and implemented a few measures for resellers going forward. What you should know: For ledger or ANY hardware wallet, buy directly from source. That's still the safest bet at the moment. This also means buying directly from the website of Ledger, Trezor, etc Stay safe! https://www.ledger.com/blog-response-hardware-implant-attack

https://x.com/pete_rizzo_/status/2109324397056340152 https://x.com/Ledger/status/2109331538072494364 Big updates to what happened in this case. Apparently the reseller was bought over by a bad actor, who subsequently compromised all ledger devices. The original reseller had an NDA and couldn't post that they sold the company to the bad actors. Crazy stuff happening here really with over $86m lost to this.

Another security compromise apparently with Ledger this time with a reseller. Take note if you've bought from this reseller called CryptoBillis recently.

In case you forgotten.. The largest liquidation event happened on 10/10 last year

And looks like market dropped quite a bit today, been awhile since we see another liquidation event.... ..And also, we're almost to the anniversary of the 10/10 black swan liquidation event that happened last year... do you still remember?

Well, woke up to another news of another chain shutting down. If you've ever used Abstract before, the dateline is 15th December to bridge your funds out. https://x.com/AbstractChain/status/2107554632675340420

Blast has recently announced it shutting down just yesterday as they "do not see a credible path to making the chain economically sustainable." As a result, they will shut the chain off by October 26th which is later this month. If you still have funds on the chain, you need to bridge them off or they will be lost for good. I would recommend using Jumper as a way to do so if you have any remaining funds on it. Use this link to bridge ETH from Blast to Base : https://jumper.xyz/?fromChain=81457&fromToken=0x0000000000000000000000000000000000000000&toChain=8453&toToken=0x0000000000000000000000000000000000000000 Announcement here: https://x.com/blast/status/2106032805280891073

Another checker especially for perp DEXes, especially for people who were farming perp DEX during that season who may have left some money in their account and forgotten. Use this website to check. Input address only, no wallet connection needed. If it does find some money, it'll direct you to the website itself. https://perp-radar.ayorapp.chatgpt.site/

If you've bridge before, you may want to check this app. This helps you to check if you may have any stuck funds on any bridges that you forgot to claim in the past. Just enter address, no wallet connection needed. https://stuckfunds.eth.limo/

Follow up from the CEO

Developing news - Bitget Crypto Exchange got hacked for over $350m hot wallet hack If you have funds in this exchange, might want to withdraw first just to be safe.