$41.000.000 Worth of $BTC Hacked from Binance Hot Wallets

Binance compromised, deposits and withdrawals suspended, trading continues

Altcoin Magazine
May 8 · 2 min read

LIVE UPDATE from Binance CEO, CZ: https://twitter.com/binance/status/1125959459782553600

According to a Binance Security Breach Update, 7000 $BTC, a large number of user API keys, 2FA codes, and very likely additional vulnerable info has been compromised and stolen by hackers.

The techniques used to hack the Binance exchange includes phishing, viruses and other attacks, and they state that there may even be additional affected accounts that have not yet been identified.

The blockchain shows a withdrawal from the Binance hot wallets of 7000 $BTC: https://www.blockchain.com/btc/tx/e8b406091959700dbffcff30a60b190133721e5c39e89bb5fe23c5a554ab05ea and is the only affected transaction.

The hacked BTC accounts for 2% of the total BTC holdings, and Binance reassures that cold wallets remain unharmed.

The hackers patiently waited for the right moment to execute a series of well-orchestrated actions through multiple accounts and the most opportune time, and as a result, the transaction passed their existing security checks, and thus, they were unable to block the withdrawal before it was executed.

Once withdrawn, a series of alarms were triggered in the Binance system and all withdrawals were immediately stopped.

Funds are relatively #SAFU

According to Binance itself, all funds will be recovered from the #SAFU Fund, and no user funds will be affected by the hack. A series of additional security reviews have been estimated to take a week from now, and they will keep the community updated frequently as they progress forward.

As a result, deposits and withdrawals will remain suspended during this period of time, but trading will continue to be enabled.

According to Binance themselves, hackers may still be in control of certain user accounts and may use the compromised accounts to affect prices on Binance.

CZ Twitter AMA continues

In a final note from CZ, he states that the previously scheduled Twitter AMA will continue.


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The best darn place to read and write about crypto and blockchain

ALTCOIN MAGAZINE

The best damn place to read and write about crypto and blockchain.