Binance Recovers Majority Funds Stolen in Curve Finance Hack

“The hacker kept on sending the funds to Binance in different ways, thinking we can’t catch it,” CEO Changpeng Zhao said

article-image

Binance’s Changpeng Zhao

share
  • Compared to protocol exploits, the losses suffered as a result of the DNS hijack are relatively small
  • Both operational security and technical security of DeFi dapps is expected to improve

Binance managed to freeze or recover a majority of the funds that hackers stole from DeFi protocol Curve Finance this week, the exchange’s CEO Changpeng Zhao said on Friday.

Zhao said in a tweet that the exchange is working with law enforcement authorities to return funds to users. Curve retweeted Zhao’s post, an apparent confirmation of the development.

Loading Tweet..

Curve — the fourth largest DeFi (decentralized finance) protocol with about $6 billion in total value locked (TVL) — was struck by a security incident on Aug. 9, leading it to warn users against using its website. About $570,000 worth of tokens were believed to be stolen in the hack.

Unlike protocol exploits, the culprits took advantage of shortcomings in the security of online service providers — in this case, Curve’s domain name system (DNS). A DNS maps readable website names to IP addresses.

Marcus Sotiriou, analyst at GlobalBlock, said the hackers modified the IP address translated by the DNS for the curve.fi website. They provided the IP address of their own server and created an identical web application, he said in a note, allowing them to create new smart contracts to steal money. Users were approving transactions that were actually stealing their funds.

In the past two years, such attacks have become prevalent in the crypto industry as thieves search for ways to part crypto users from their funds.

Last month, infrastructure provider Ankr was hit with a social engineering-instigated DNS attack.

“This is an example of how important it is for users within DeFi to be fully educated on the protocols they use,” Sotiriou said.

“People could have protected themselves if they checked all the smart contracts they interact with,” he said.

But this is beyond the technical know-how of a vast majority of DeFi users, according to Teddy Woodward, co-founder of Notional Finance.

“The average retail user is not going to review the smart contracts they interact with [but] I think it is reasonable for larger or more professional users like businesses and funds to make an effort there, and many do,” Woodward told Blockworks, adding that over time, the safety of DeFi protocols has been consistently trending upward.

Each exploit hardens dapps and makes them safer for the average user.

“I think about it like plane travel,” Woodward said. “That used to be extremely dangerous, now it’s safer than driving a car.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The exchange’s full approval from the UAE’s Securities and Commodities Authority marks a regulatory milestone for global crypto oversight

by Blockworks /
article-image

Founded by Coinbase and Cruise veterans, CipherOwl plans to bring artificial intelligence to blockchain monitoring and risk detection

by Blockworks /
article-image

As the shutdown enters its second week, sources say the Senate Banking Committee looks to move ahead with a market structure bill markup

article-image

The collaboration expands Ripple’s Middle East footprint, supporting Bahrain’s blockchain adoption and future rollout of Ripple USD

by Blockworks /
article-image

The medical device firm will manage its $400 million Solana holdings using Coinbase Prime infrastructure to bolster its digital asset strategy

by Blockworks /
article-image

The deal gives PayPay a 40% stake in Binance Japan, linking digital assets with Japan’s largest mobile payment network

by Blockworks /