ETH arbitrage data:
Attacker swaps $440.47m into ETH through 5 wallets.
Above a 3% premium, approx. ~130k ETH was sold by arbitragers at a total of ~$339m, while its respective value on CEXs was ~$295m.
Total gas paid: ~$437k
Total in tips: ~$3.4m
Arbitragers made ~$40m!
blade retweeted
>security incident may involve a compromised DevOps engineer’s laptop, which allowed an attacker to gain access to a service container and submit unauthorized withdrawal transactions.
let's guess what could've gone wrong at binance. my guesses, in order of likelihood:
1. Lazarus subgroup TraderTraitor's usual stuff: spear phishing, fake recruitment, or some other social engineering
2. compromised npm or other developer dependency tool
3. third party infrastructure compromise to binance
4. vulnerability somewhere in binance infra pivoted to compromising the employee device, used ai to speed up, seems also less likely
5. a new Lazarus subgroup using ai to discover and exploit complex 0/n-days in browsers, php2shell, and similar targets. seems unlikely to me.
Binance's initial investigation suggests that the security incident may involve a compromised DevOps engineer’s laptop, which allowed an attacker to gain access to a service container and submit unauthorized withdrawal transactions. We have found no evidence of any wallet private key leak. We will share a detailed technical post-mortem once the investigation is complete and the facts are fully verified.
The estimated total impact sits at around $6.3B. We have worked with blockchain partners to freeze affected assets, with ~$3 billion frozen on-chain so far.
Binance will cover all losses from the SAFU fund and the company’s funds. User funds are safe. We will also publish an updated Proof of Reserves once the remediation is complete.
As an immediate precaution, Binance has:
- temporarily suspended deposits and withdrawals while security checks are completed;
- revoked the affected address authorisation;
- engaged law enforcement and blockchain intelligence partners to trace and recover funds.
Our teams are working around the clock to resolve this issue safely and thoroughly. We are working closely with our law enforcement partners to confirm the identity of these criminals and bring them to justice.
Please rely only on official Binance channels for updates. Please feel free to contact Binance Customer Support if you have any further questions.
binance.com/en/support/annou…
at the end of the day every trading product is looking to attract people to the slaughterhouse only some do it more brazenly than others, and this includes every single form of trading whether it be perps, shitters, there’s a reason 90% of people lose money, no more of that holier than thou crap half the industry pulls, we all click buttons to extract money from others in our respective niches, don’t care if you trade leverage or trade memes
Game is game ngl, capital always accrues where it must over time, at the end of the day, every trader is an extractor who merely rides the coattails of those who create value, there is no nobility in our pursuits
there's never any point hating, if you look down upon a market you can simply choose not to play
The people with the right to complain are those who drove large amounts of volume to the exchange early, risking their own capital by betting on the protocol becoming consensus, but at least most have been made whole / in profit through rewards
If you were farming in size long after mint decay, then you were already too late 🤷♂️
bullish long term as a general casino business
cushions losses for new users by making it the most direct own the casino play, so new liquidity is incentivized to trade on there rather than other platforms
long term you get the possibility of newer and newer capital to enter, while if paper remained a normal tradeable token, then once the farming period is over, chunk of liquidity naturally leaves, driving less and less revenue to the token
this way you attract new capital by keeping a flowing revenue stream by creating EV mechanics of owning the casino
