Leading Cryptocurrency Exchange Breached by Hackers in Brazen HeistScroll Down
On May 7, it was reported that hackers had breached Binance, which is one of the world's leading digital currency exchanges.
According to Binance, the hackers used a variety of techniques to breach security. These techniques included the use of viruses and phishing tactics, which exposed a large number of both API keys and 2FA codes.
Binance reported that the hackers were able to steal, through a single transaction, 7,000 bitcoins. The value of the theft is more than $40 million.
In response to the attack, Changpeng Zhao — who is the CEO of Binance — posted a letter on Binance's website. He indicated that the stolen bitcoins were taken from hot wallets. He further indicated that only 2% of the exchange's bitcoins are held within these types of wallets, and he insisted that all other types of wallets connected to the exchange were unaffected by the security breach.
Also in response to the attack, Binance announced that they had suspended all withdrawal and deposits on the exchange until it completes what it calls a security review of its systems. Zhao has estimated that this review will take no more than a week, and it will not affect trading.
Zhao went on to say in the letter that people should understand that the hackers may still control a number of accounts. He also believes that these hackers could use this control to influence the market and its prices. He insists that the company will be monitoring this carefully, but they believe that — because withdrawals have been suspended — there is not much incentive for the hackers to influence the market.
For the sake of transparency, Zhao is also planning to conduct an "Ask Me Anything" (AMA) discussion on Twitter, where he will be fielding questions and concerns from customers and others.
The exchange plans to make good on any losses that have incurred because of the breach. They will do this through their Secure Asset Fund for Users. They created this fund in the summer of last year as a means of customer insurance. Reportedly, 10% of trading fees go to this fund.