According to a recent update, Binance became aware of a serious breach to their security. Hackers managed to gain access to API keys, 2FA codes, as well as other potential info.
How possible is it that the world’s best-known crypto exchange having some of the greatest talents in the world be hacked? This breach simply tells us that there’s no exchange out there that cannot be hacked. Users need to take things seriously at this point and then take their time to properly store their private keys in cold wallets.
The post revealed that the hackers utilized viruses, phishing and several other attacks which the company is still investigating. So far, the movement was done on just one wallet, which is to say that the thieves carried out the 7000 BTC hack in a single transaction.
Binance has however warned that other accounts might have been affected as well but is yet to be identified. Despite this warning, Binance insists that just its hot wallet account was affected by the hack, which holds about 2% of all Binance’s bitcoin.
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Cryptocurrency News – Binance’s suspension of deposits and withdrawals for a week
Binance will be conducting a complete security audit in order to discover as soon as possible what truly went wrong.
While users of Binance will continue trading so as to adjust their positions if required, through this period, all withdrawals and deposits will be suspended. The company pleaded:
“We beg for your understanding in this difficult situation.”
To cover costs, Binance to make use of the SAFU Fund
Fortunately, as one the largest and most profitable crypto exchange in the world, users whose funds were involved in the hack have nothing to worry about. The Secure Asset Fund for Users (SAFU Fund) of Binance covers the costs.
Binance has thought of several other ways of giving the hackers a payback, which includes the re-org approach. This has to do with moving the funds to miners instead.
While this move might deter other hackers in the future, Changpeng Zhao (CEO of Binance) has said that Bitcoin’s credibility could also be damaged and even split the community down the middle.
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