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Hackers Steal over 7000 Bitcoins worth $40 Million from Binance

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Hackers Steal over 7000 Bitcoins worth $40 Million from Binance
  • Binance which is one of the largest crypto exchange today got hacked.
  • 7000 Bitcoins were moved from Binance Hot wallet which was worth $40 Million.
  • However, the exchange will cover all the losses and no user will be affected by this security breach.

Binance, one of the largest crypto exchange today reports a large scale security breach. May 7, 2019, at 17:15:24 (UTC) is the exact time when the hackers were able to pass the existing security checks.

Basically, the hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. It also uses techniques like phishing, viruses and other attacks.

As per Binance, there are chances that some additional accounts may also be affected which have not been identified yet. The hack impacted only the hot wallet of Binance which contains about 2% BTC holdings of Binance. However, all other wallets are secure and unharmed.

Hackers steal almost 7000 Bitcoins worth $40 Million in one transaction.
https://www.blockchain.com/btc/tx/e8b406091959700dbffcff30a60b190133721e5c39e89bb5fe23c5a554ab05ea

As per Binance blog post, “The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed. Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that.”

Binance will conduct a thorough review of this security breach and this will take about one week (as per Binance). Till that time deposits and withdrawals will remain suspended.

However, Binance will use the #SAFU Fund to cover the losses in full so no users fund will be affected.

Ashish is a cryptocurrency journalist who has been passionately involved in the bitcoin space since 2016. His interests lie in bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.