Binance Suspends EGLD Network After Hacker Stole $1.65M

Binance, the largest cryptocurrency exchange, has announced that it has suspended the withdrawal and deposit function of the Elrond (EGLD) network on its platform.

This announcement came via its official Chinese page in the early hours of June 8, 2022. Binance said the action was necessary due to potential security issues on the EGLD network. The suspension took effect from 08:11 on June 06, 2022.

At the moment, Binance is in active communication with the EGLD project team to resolve the issue as soon as possible.

The exchange noted that it will resume the deposit and withdrawal services when the EGLD network is running stably without further announcement.

The Elrond network came under attack on June 6, 2022. According to Wu Blockchain, a Twitter page run by crypto reporter Colin Wu, the hackers successfully siphoned free EGLD tokens to the tune of $1.65 million. The attackers went ahead to sell these tokens on Maiar decentralized exchange (DEX), which led to a 92% collapse of the EGLD token. At present, Maiar has suspended its DEX and related APIs.

According to a crypto analyst on Twitter, the sabotage of the EGLD network was orchestrated by three new crypto wallets. They said the three wallets received, 800k, 400k, and 450k EGLD after a smart contract deployment. However, it was not clear where exactly the funds came from.

At the time of writing, EGLD trades at $67. The recent attack puts its seven-day trading percentage at -17%. EGLD ranks among the top 50 cryptocurrencies with a market cap slightly above $1.5 billion. It attained an all-time high of $542 seven months ago. It has lost above 87% of its value since then.