Binance Hacked for $40 Million in Bitcoins, CZ Tweeted, ‘Funds are #safu’

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Binance Hacked for $40 Million in Bitcoins, CZ Tweeted, ‘Funds are #safu’

Malta-based, Binance Exchange, which is one the largest Cryptocurrency Exchanges and brands in the crypto-sphere has been hacked for 7000 BTC or (about $40.6 Million at $5800). It impacted the Exchange’s ‘hot wallet’. Nevertheless, Exchange CEO, Changpeng Zhao, has confirmed that no users’ fund will be affected as they are insured internally by the firm.

According to Binance, the hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. It is possible that the privacy of many customers was compromised in the hack.

The Bitcoins [BTC] was stolen for the ‘hot wallets’ of the Exchange. According to their report, the security system was able to detect the hack only after one single transaction of 7000 BTC.

The Transaction ID for the same is can be found here.

Moreover, CZ also mentioned that while they have identified the nature of the hack, they haven’t placed the necessary security walls required just yet. He also announced the suspension of deposit and withdrawals until the “security review” is conducted at the Exchange. He added:

“Most importantly, deposits and withdrawals will need to REMAIN SUSPENDED during this period of time. We beg for your understanding in this difficult situation.”

Trading will continue as before. CZ also claimed that the amount of the hack was only 2% of their Bitcoin holdings. Furthermore, Binance has also created an internal insurance mechanism which will guarantee the entire amount of the hack under #SafuFund. Binance mentioned:

“To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. This fund will be stored in a separate cold wallet.”

The Exchange has vowed to maintain transparency and hold accountability in the issue as well. However, the hack has apparently affected the price of Bitcoin [BTC] negatively. Bitcoin was testing $6000, but at 3: 50 Hour UTC on 8th May it traded at $5860.

Do you appreciate Binance’s response in the issue? Do you have any other details related to the hack? Please share with us.

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Binance Hacked for $40 Million in Bitcoin, CZ Tweeted, 'Funds are #safu'
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Binance Hacked for $40 Million in Bitcoin, CZ Tweeted, 'Funds are #safu'
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Malta-based, Binance Exchange, which is one the largest Cryptocurrency Exchanges and brands in the market has been hacked for 7000 BTC or (about $40.6 Million at $5800). It impacted the Exchange's hot wallet only. Nevertheless, the Exchange and its CEO, Changpeng Zhao, has confirmed that no users' fund will be affected as they are insured internally by the firm.
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Coingape
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Nivesh Rustgi 341 Articles

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes and reach out to him at nivesh (at) coingape.com

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Nivesh Rustgi 341 Articles

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes and reach out to him at nivesh (at) coingape.com

Follow Nivesh @