On Tuesday, the largest crypto exchange by volume,  Binance, reported that over 7,000 Bitcoin has been stolen by hackers.

About 7,000 Bitcoin stolen from Binance in one hacker attack

The largest crypto exchange has announced that a large scale security breach has been discovered earlier on the 7th of May, finding that malicious actors could access user API keys, two-factor authentication codes, so as other info, and have been stolen the significant Bitcoin amount.

As a result of this, they could withdraw almost $41 million in Bitcoin from the exchange, as it has been seen from a transaction which was published in the security notice.

The disclosure actually came several hours after the CEO posted a tweet in which he said that the exchange has been undertaking unscheduled server maintenance, writing that the funds are #safu. After this disclosure announcement, he also posted a tweet in which he said that the exchange is going to provide some more detailed update about stolen assets shortly.

The exchange has probably not identified all the accounts from which was stolen, according to Zhao. And, as per one statement of Binance, the breach just affected the hot wallet of the exchange, which contains almost 2% of its total Bitcoin holdings.

Zhao said that all of their other wallets are unharmed and secure. He added that the hackers were patient to wait, and execute the well-prepared actions through several seemingly independent accounts at best possible time. The transaction is also structured in ways which passed their existing security checks. He said that it was unfortunate that they could not block the withdrawal of the stolen coins before it has been executed.

This withdrawal also triggered internal alarms after it has been executed, and the CEO said that the exchange froze the withdrawals after the discovery. Whereas the withdrawals and deposits are going to stay suspended for the following week, trading is going to be re-enabled, although Zhao cautioned that the hackers could still have some control over several accounts.

Binance using SAFU to cover the stolen volumes

Binance is going to conduct a thorough security review, encompassing its data and systems during the week that comes. It is going to use its SAFU or Secure Asset Fund for Users, to cover the loss of the stolen Bitcoin, which will not affect the users.

This fund consists of about 10% of all trading fees which are absorbed by Binance and has been initially launched to protect the users of the exchange in some extreme cases, as a notice from previous states. It is actually stored in its own cold wallet.

The CEO of the exchange said that in these hard times, they are trying to maintain transparency and are going to appreciate the support from others. He even concluded that he is going to participate in a previously scheduled Twitter “ask-me-anything.”

The prices have responded with Bitcoin, which is the premier crypto in the world, dropping $290 together with most other cryptos which are down somewhere between 1 and 10%.

Other cryptocurrencies experiencing losses

After the report about the stolen Bitcoins, Ether and Litecoin experienced between 4 and 6% losses while Bitcoin actually managed to resume the green, thanks mostly to its bullish rally from a few days ago, which saw the prices reaching as high as $5,972 on the Coinbase exchange.

The native crypto BNB or Binance Coin is also down about 8.05%, and it cannot escape the controversy from the news of these days.

The price of BNB continues reaching for a bottom after it actually broke from a range which it had held for 18 days, and which was between $22 and $25.40, with a new all-time high at $26.44 on the 3rd of May.

LEAVE A REPLY

Please enter your comment!
Please enter your name here