7,074 BTC Stolen from Binance; Support Pours in and Loss Will be Covered

Binance has suffered a $41 million theft from its hot wallet as hackers withdrew 7,074 BTC, but SAFU fund should cover losses.

Binance, one of the leading cryptocurrency exchanges in the world, has announced the discovery of a security breach today, which saw 7,074 Bitcoins, worth over $41 million, stolen and withdrawn successfully by hackers.

The transaction, which can be viewed here, details all wallets the funds went to, and among other industry stakeholders, Coinbase has also pledged support by blocking deposits from these addresses.

News of the security breach was shared on Twitter by Binance CEO CZ, (Changpeng Zhao), who wrote that it was not the best of days, but the exchange is to remain transparent. Meanwhile, Tron’s Justin Sun offered to deposit $40 million worth of USDT to Binance and buy BNB, TRX, and BTT to support the exchange.

However, CZ thanked all the supporters and clarified that Binance’s Secure Asset Fund for Users, or SAFU, will cover the $41 million loss in full and user balances will not be affected.

For now, the exchange has blocked deposits and withdrawals for one week in order to conduct an investigation into the security breach, which it says is a result of hackers obtaining

“a large number of user API keys, 2FA codes, and potentially other info”.

The hackers are believed to have used a variety of techniques, including phishing, viruses and other attacks to obtain this sensitive information and were able to bypass Binance’s internal checks by withdrawing the stolen funds.

“Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that.,”

the exchange’s official statement reads.

Binance CEO was available for the scheduled AMA Twitter session despite this development and shared how he felt during the live video which can be watched here.

https://twitter.com/binance/status/1125959459782553600

On a lighter note, he laughed about a message he received in private, saying that he [Binance] was no longer a virgin [now that it has experienced theft].

Traders can log in to the exchange and continue to trade and balance their positions, but will not be able to deposit new funds or withdraw existing ones for a week.

Reading now