Hackers steal $40 million of Bitcoin from crypto exchange Binance

Thursday, 09 May, 2019

"The transaction is structured in a way that passed our existing security checks", Binance said.

"In this hard time, we strive to maintain transparency and would be appreciative of your support", Zhao said Tuesday.

According to the most recent update posted on Binance's blog, the hackers launched an attack against the exchange that enabled them to withdraw 7000 BTC from Binance's hot wallet in a single transaction. Binance said that despite the large amount stolen, the theft only impacted around 2 percent of its total bitcoin holdings and that all of their other wallets remained "secure and unharmed". This resulted in a loss of 7,000 BTC, worth roughly around $40 million at the time of this writing. It's still not known how many users were affected by the breach.

According to TechCrunch, he said that the attack was a very advanced effort executed by "very patient" hackers who waited until they had a number of high net worth accounts. Once executed, the withdrawal triggered various alarms in our system.

The CEO stated: "We do have the funds to cover that $40 million so we are completely OK on the funding side". However, Changpeng Zhao responded by saying that the exchange is hurt but not broke and they are going to cover the losses through their $SAFU fund. "We have been working with other exchanges to block deposits from hacked addresses".

"The team is still deciding that, and we are running through the numbers and checking everything", he added.

It appears that Binance has not yet fixed the security issue that led to the previous breach, leading one to assume that another hack in the same vein is not out of the question. "We beg for your understanding in this hard situation", the cryptocurrency company said. However, trading will continue, the exchange added. The company said thieves employed phishing and viruses to commandeer the 7,000 bitcoin, and that it was possible hackers might still control some user accounts. We will monitor the situation closely.

The Binance cryptocurrency exchange has reportedly suffered an attack.

Regardless, in order to get a withdrawal limit of up to 100 BTC per 24 hours, the user needs to go through a rigorous KYC procedure which requires a range of personal documentation, as well as an actual photo of the person in real time. Several companies hoping to cash in on the hysteria even changed their names to include the word "blockchain" - the technology that drives the virtual currency - sparking widespread amusement and mockery.