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Binance Hacked for 7,000 Bitcoin in Cryptocurrency Exchange Security Breach

One of the most prominent cryptocurrency exchanges, Binance, has just faced a major security breach. Specifically, Cointelegraph reports that May 7th saw Binance hacked for a whopping 7,000 Bitcoins.

Binance hacked in 7,000 Bitcoin security breach

Specifically, Binance reports that the hackers responsible for the security breach utilized several different strategies to gain pertinent information. 

These tactics are said to include both viruses and phishing schemes, employed to retrieve various API keys, 2FA codes, as well as other information. Nevertheless, Binance notes that the exchange is still ”concluding all possible methods used”.

Ledger Nano S - The secure hardware wallet

In addition to this, Binance reports that there was a single affected transaction which allowed hackers to withdraw 7,000 Bitcoins. To put this into perspective, that amount equals to roughly $41,258,000 worth at the time of writing. 

Moreover, Binance has also posted an open letter on its website, acknowledging the security breach. In it, Binance highlights that this security breach only impacted the exchange’s hot wallet. 

What’s more, Binance’s hot wallet only contains an approximated 2% of the exchange’s total Bitcoin holdings. Binance has additionally stated that all other Binance wallets ”are secure and unharmed”.

Binance will cover the security breach in full, no user funds will be affected

Binance’s CEO, Changpeng Zhao, announced that he felt remorse for the fact that Binance was not able to ”block this withdrawal before it was executed”. Nonetheless, he also reveals that the instance security systems actually saw Binance hacked, ”various alarms” were triggered.

At this point, all withdrawals were immediately seized. Furthermore, Binance states that it will use the ”SAFU fund” (Secure Asset Fund for Users) to cover this security breach in full. As such, no user funds will be adversely affected.

In an effort to prevent any further hackings from taking place, Binance announced that it will now conduct a ”thorough security review”. This review is said to include all parts of Binance’s systems and data, and will take approximately one week. 

Hackers may still control certain user accounts

During this period of time, deposits and withdrawals will remain suspended at the exchange. With that being said, Binance notes that it will continue to enable trading. This will allow users to adjust their positions during this duration, if they so wish.

Zhao also indicated that hackers may still have access to some accounts on the website, and such, proceeding cautiously is of paramount importance.

”Please also understand that the hackers may still control certain user accounts and may use those to influence prices in the meantime. We will monitor the situation closely. But we believe with withdrawals disabled, there isn’t much incentive for hackers to influence markets.”