Binance’s CZ Pledges to Block Cryptopia Funds amongst Rumors of Exit Scam
Following yesterdays $14 million hack at the New Zealand-based digital asset exchange Cryptopia, Changpeng Zhao of cryptocurrency exchange giant Binance has pledged to block any funds linked to the theft.
In a post on Twitter, the Binance founder who is affectionately known as CZ in cryptocurrency circles, announced:
“Just checked, we were able to freeze some of the funds. I don’t understand why the hackers keep sending to Binance. Social media will be pretty fast to report it, and we will freeze it. It’s a high-risk maneuver for them.”
Due it to being one of the largest and most liquid cryptocurrency exchanges in existence, Binance is often used by hackers to launder stolen digital assets. However, as noted by CZ, the exchange is always quick to trace and lock down any stolen funds flowing through its exchange.
Tracking Blockchain Thefts
Blockchain investigators who have been tracking the stolen funds across various exchanges have found evidence that may even suggest the theft was an inside job or exit scam. Exit scams, where a company sells off assets before suddenly closing its operations, have become an increasing threat during the recent year-long bear market that has seen many blockchain businesses struggle to make ends meet.
One such Reddit investigator alleges that transactions on Ethereum blockchain tracker Etherscan reveal suspiciously large amounts of assets being moved from known Cryptopia wallets just before the exchange announced ‘Unscheduled Maintenance’.
The Twitter account WhaleAlert picked up on one particularly large movement of 19391 ether tokens (approximately $2,5 million) moved to a wallet that has since been identified as potentially belonging to Cryptopia. Another user highlighted an address that contained $11 million worth of Ethereum ERC-20 tokens that were transferred directly from Cryptopia.
While Cryptopia has notified the local New Zealand authorities, the exchange is yet to publically comment on the developments.