What's the point of even stealing the stablecoins? They're controlled by private companies that can easily freeze them
Am I missing something here? Seems like a waste of time
What's the point of even stealing the stablecoins? They're controlled by private companies that can easily freeze them
Am I missing something here? Seems like a waste of time
> waste of time
It seems like it took some number of minutes and scored billions, and at that point it was a matter of whether/how much they could trade out before it was locked. I don’t know how many minutes or hours it took to lock? If they managed to trade 1% before blocking, that would be an extra tens of millions. If 10% that would be hundreds of millions, etc.
Fair enough
Apparently [1], he managed to put them as collateral on a lending platform. That allowed him to borrow ETH. The way it works is that if you don't pay back the loaned ETH, the lenders can take the collateral. Except that here the collateral is itself frozen. So apparently, the ETH as now safe in the hacker's wallet and the lenders just lost a bunch of money.
I wonder why not swap them? And had he, would it have bricked the swap pool?
[1] https://x.com/czesmaill/status/2115988477905080716
Maybe swap pools and/or law enforcement working together with stablecoin issuers are more vigilant about pools than they are about various DeFi lending pools, given that one usually represents a change of ownership while the other does not?
Thanks for sharing, very smart move from the badboys.
That's smart
In this case it looks like the attacker managed to swap some stablecoins into ETH before they were frozen.
I'm not clear whether the stablecoin providers will then be "creating" new coin to make binance whole - without which you've still fucked binance
That's a quick recipe to lose all their customers
That's exactly the scenario they say they would never do and go as far as to have external audits to prove that they're not just "printing" free cash
I guess the point is simply that "blacklisted" coin is no longer a liability. They wouldn't be "printing free cash" they'd be cash neutral.
The alternative is the stablecoin providers effectively keep the money for themselves. At that point the justification for the blacklisting seems like little more than self enrichment?
They just freely delete their credit.
Why would they? In addition to moral hazard (next time), this is binance's fuck-up.
Have bad security, get hacked.
If binance wanted to hedge against that risk, they could have bought a cyberinsurance policy (if they could get one for the amounts they'd need).
They can just pocket the corresponding 5.6b USD.
It reveals what they are to the public. It's fake crypto with all the downsides of crypto but none of the upsides.