Hackers remove 7,000 bitcoins in a security breach in Binance Crypto Exchange

Binance, one of the largest cryptocurrency exchanges per daily transaction volume, has experienced a significant security breach on May 7, according to a statement shared with the Cointelegraph on May 7.

According to Binance, hackers employed a variety of tactics that included phishing and viruses to obtain a large number of 2FA codes and API keys in addition to other information.

According to the exchange, there was an affected transaction, in which hackers were able to withdraw 7,000 bitcoins (BTC) worth $ 40,705,000 at the time of publication.

In a letter published on the Binance website, CEO Changpeng Zhao claims that the bitcoins were removed from their wallets, which contain only 2% of the total bitcoin holdings of the exchange. Zhao says that Binance’s other portfolios are not affected.

Binance will suspend all deposits and withdrawals while carrying out a security check on their systems, which Zhao estimates will take up to a week. The trade will remain active and operators will be able to adjust their positions. Zhao reported the following:

   “Please also understand that hackers can still control certain user accounts and can use them to influence prices in the meantime. We will follow the situation closely. But we believe that with withdrawals disabled, there is not much incentive for hackers to influence the markets”.

Zhao adds that he will hold an AMA or intercom on Twitter in a couple of hours to answer questions from the community.

Binance will use its Safe Assets for Users (SAFU) Fund to cover the incident. The exchange created the fund in July 2018 as a type of emergency insurance. Binance allocates 10% of its total commercial commissions to finance SAFU.

The large exchanges or Exchange companies have security systems that in some cases are exploited by hackers, who have strategies that are one step ahead of the security engineers of these companies, it is possible to have greater security systems but at a higher cost, the blockchain-bitcoin technology is very secure, the gaps are presented in the servers of the companies in charge of allowing transactions. The Exchanges lack more security. It is waiting for new announcements.

Reference: cointelegraph.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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