The Binance exchange has notified the cryptocommunity that a “dusting” attack had been executed on the Litecoin network on August 10. Binance made the announcement via Twitter,
Binance also added revealed the LTC transactions, about 0.00000546 LTC, was sent to 50 different wallets. After this point, the hackers would have tried to “break the privacy” of cryptocurrencies, tracking the transactional activity and using any info gathered to scam the wallet owners.
A dusting attack is when an individual or a group sends a fractional amount of cryptocurrency to a wallet, which is then analyzed by the attackers so that they can discover the identity of the person or group behind the wallet. Following this, they can execute phishing or other forms of attacks to steal the funds in the particular wallet.
Attacks on crypto wallets and exchanges still continue to occur at a somewhat alarming rate. Binance has already been subject to a hack this year, having $40 million worth of crypto stolen. Similarly, New Zealand’s Cryptopia exchange lost roughly $16 million early on in the year.
This is partly spurring the development of decentralized exchanges, which is a non-custodial solution for trading. DEXs are faster, more secure and cheaper - and Binance itself is doing a lot to make its very own decentralized exchange as attractive as possible for users.