Binance was massively hacked a few hours ago. Hackers stole 7,000 Bitcoin (BTC) from Binance. The stock market is the largest Bitcoin and Crypto Exchange in the world in terms of trading volume. It is one of the most trusted and secure exchanges in Crypto Space. Nobody expected such a massive attack after such a long series of successes by Binance and BNB. Following the announcement, the Bitcoin price has fallen by approximately 3% and the Binance Coin (BNB) price has fallen more than 10%.
Binance noticed the hackers before the Bitcoin transaction
Binance announced on May 7 that a “major security leak” was discovered. Hackers were able to access user API keys, two-factor authentication codes, and potentially other information. As a result, they were able to transfer around $ 41 million to Bitcoin from the stock market. The entire amount of 7,000 BTC was withdrawn with a single transaction: https://www.blockchain.com/btc/tx/e8b406091959700dbffcff30a60b190133721e5c39e89bb5fe23c5a554ab05ea
This is the only known transaction that has taken place by the hackers. It also affected only the Binance hot wallet, which accounts for 2% of Binance’s total Bitcoin (BTC) reserves. All other Bitcoin deposits are safe and not affected by the hack, Binance says.
Shortly before, CZ has tweeted that an unplanned server maintenance will take place, which will affect incoming and outgoing payments for a couple of hours. Shortly thereafter, he said that he will announce more details about server maintenance shortly. Then came the official horror message from CZ.
Not the best of days, but we will stay transparent. Thank you for your support!https://t.co/Y1CQOatEpi
— CZ Binance (@cz_binance) May 7, 2019
Binance handles all losses with SAFU funds
According to Binance, the hackers had the patience to wait and execute well-organized actions through several seemingly independent accounts at the right time. The transaction was structured to pass through the existing security controls. Binance did not manage to block the payout of the 7,000 bitcoin. After the transaction, the withdrawal triggered various alerts in the system and immediately stopped all payouts. Binance will take over the damage completely with its Secure Asset Fund for Users (SAFU Fund).
Hackers are still controlling several Binance user accounts and deposits and withdrawals have been stopped for a week
Binance will now perform a detailed security check. The security review will take about a week as all parts of the systems and data need to be verified. There will be regular updates about the progress. During this time, all deposits and withdrawals are not possible for the time being. The trade is not affected.
It was noted that certain accounts are still under the control of hackers. The hackers are currently no longer able to pay the amounts but still have access to the markets. Depending on the size of the deposited amounts on the controlled accounts, certain Altcoin rates could be manipulated. Binance observes the situation very closely and asks for the understanding of the users in this difficult time.
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