BtcTurk confirms cyber attack, AVAX wipes out nearly 7% value on the day

Avalanche suffered a decline in its price, erasing 7% value on Saturday.
AVAX’s social dominance hit a near three month peak, per Santiment data.
An on-chain analyst identified a $54.2 million AVAX transfer to Coinbase THORChain, says transfer is related to a BtcTurk cyber attack.

Avalanche (AVAX) wiped out nearly 7% of its value on Saturday, June 22. The smart contract platform recently announced a partnership with Konami Digital Entertainment.

The game developer is expected to debut Resella, an NFT platform that simplifies creation, issuance and trading of these digital assets on Avalanche.

Avalanche’s AVAX token hit by correction

AVAX is trading at $25.88 on Binance, down nearly 7% on the day, per TradingView data. The smart contract platform’s token suffered a correction over the weekend, while its social dominance hit a near three-month peak.

Social dominance is a metric used to identify an asset’s relevance among traders. The metric identifies the asset’s share in crypto discussions across social media platforms like X. Santiment data shows that AVAX social dominance is 1.211%, up from 0.7281% on March 22, nearly three months ago.

The metric has no direct correlation with the asset’s price, however, it typically precedes local tops/ bottoms as seen in the Santiment chart below.

Social dominance and Avalanche price

On-chain analyst says AVAX price decline is related to a cyber attack on BtcTurk

On-chain analyst ZachXBT said in recent tweets on X that the decline in Avalanche is likely caused by a large deposit exceeding $52 million. The AVAX transfer was made to Coinbase by an address that the analyst traced back to a cyber attack on one of Turkey’s crypto exchanges, BtcTurk.

BTCTurk was apparently hacked

Not sure if their hot wallet is on x-chain pic.twitter.com/4Tdj7GjNrF
— ZachXBT (@zachxbt) June 22, 2024

ZachXBT monitored the addresses activity and believes that the entity withdrew over $46 million in Bitcoin from centralized exchanges Binance and Coinbase.

Just shared on Telegram that this entity withdrew $46M+ worth of BTC from Coinbase/Binance after those AVAX depositshttps://t.co/aONZbESvre
— ZachXBT (@zachxbt) June 22, 2024

BtcTurk confirms cyber attack, assures users are not affected

BtcTurk confirmed the news of an attack on the exchange platform's hot wallets. The exchange notes that the attack was limited to some assets in its hot wallets and cold wallets remain safe. The exchang temporarily suspended deposits and withdrawals as a precaution. Hot wallets of 10 cryptocurrencies were affected and the situation does not affect users. The exchange said in an email,

"BtcTurk's financial strength far exceeds the amounts affected by this attack, and our users' assets will not be affected by these losses."

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram