UPDATE: Binance hacker dumps FUN token, triggering a 90% price crash
CIE News ·
Update to Binance investigates $6.3B exploit as issuers freeze $3B in assets
Based on reporting by CoinDesk; not yet independently confirmed.
The hacker behind the Binance exploit dumped stolen FUN tokens into illiquid markets, driving a 90% price collapse as sell volume overwhelmed order books.
The attacker behind the recent Binance security breach has dumped the FUN token and other smaller assets into illiquid markets, causing the 2017 gaming token to crash 90%, according to reports. The sudden selling pressure quickly overwhelmed the capacity of thin order books to absorb the volume, causing sharp market instability for the affected assets. As previously reported, Binance halted transfers following an estimated $6.3 billion security exploit.
The intrusion reportedly originated from a compromised DevOps engineer's laptop, which enabled unauthorized transactions from hot wallets 14, 16, and 34. Industry partners, including Tether, Circle, and First Digital, helped freeze approximately $3 billion in affected assets across USDT, USDC, and FDUSD. Binance co-founder Yi He pledged that the exchange will fully cover customer losses through corporate funds and the Secure Asset Fund for Users (SAFU).
Key facts
- FUN token crashed 90%
- Binance hacker dumped assets
- $3B in stolen assets frozen
- SAFU to cover losses