Hackers Steal $40 Million Worth Of Bitcoin From Crypto Exchange Binance

Binance, one of the world’s online cryptocurrency exchanges, lost $40 million to malicious hackers on Tuesday. The hackers withdrew $7,000 Bitcoins worth approximately $40 million by way of a single transaction.

The hackers utilized various techniques including phishing and viruses to acquire a large quantity of data, CEO Zhao Changpeng stated in a blog post on the company’s website.

Notably, Binance stated that hackers took API keys, two-factor codes, and other valuable information in the cyber intrusion.

Binance, the world’s biggest cryptocurrency exchange by trading volume, mentioned that the cybercrime affected around 2% of its total bitcoin holdings.

“The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time,” Binance’s CEO wrote.

Binance said that a security review would take place which will take a week to complete, during which time all withdrawals and deposits are suspended. Nonetheless, trading will continue to be open.

Binance stated that its Secure Asset Fund For Users (SAFU), an emergency insurance fund, will cover lost funds.

Binance is presently working with other cryptocurrency exchanges to block deposits from compromised addresses. Zhao supported the notion that everyone to alter their API keys and two-factor authentication. It will take approximately one week before Binance may release withdrawals or accept deposits again.

After talking with several parties, Zhao has stated that the company will not proceed to pursue a rollback of the bitcoin blockchain.

On Twitter, Zhao also emphasized that “While it is a very expensive lesson for us, it is nevertheless a lesson. it was our responsibility to safe guard user funds.”