Binance Hacked Out of $40.7M; Considered Rollback of Bitcoin Network!

Binance hacked for 7,000 Bitcoin in “large scale security breach” - Decrypt

Binance, which is based in Malta but has over 400 workers spread across more than 40 countries, was the highest profile exchange to be hit since hackers stole cryptocurrency worth $530 million dollars from the Tokyo-based Coincheck in January 2018.

This, Binance states is a security breach at a large scale.

According to Zhao's statement, the loss will not impact users as the exchange will be using its Secure Asset Fund for Users (SAFU) to cover the loss.

The hackers were able to withdraw approximately 7077 bitcoins (BTC) in a single transaction - roughly $41.8 million at Bitcoin's current price. The transaction is structured in a way that passed our existing security checks.

One Bitcoin is now worth around 5,815 USA dollars, making this one of the biggest and most serious breaches of a cryptocurrency exchange in recent years. Starting from 2018/07/14, we will allocate 10% of all procuring and selling expenses obtained into SAFU to give safety to our users and their funds in monstrous circumstances.

"We stopped all withdrawals immediately after that", it added. The difference between the two is that a hot wallet is a digital storage that's connected online and is used for liquidity, while a cold wallet is bitcoin stored offline. Binance warned that other accounts could be affected.




Zhao said a major security review would be conducted and it would take about a week. "But we believe with withdrawals disabled, there isn't much incentive for hackers to influence markets".

The company's CEO Changpeng Zhao estimates that the investigation will take up to one week.

"Most importantly, deposits and withdrawals will need to REMAIN SUSPENDED during this period of time", the exchange said.

"Please also understand that the hackers may still control certain user accounts and may use those to influence prices in the meantime", Zhao noted.

Cryptocurrency markets have largely shrugged off the Binance hack, with bitcoin last up 1 percent at around $6,000, its highest since mid-November. Later that month, cryptocurrency exchange Bitfinex and stablecoin Tether were accused by the New York Attorney General of covering up an $850 million loss of customer funds.

Zhao stated, "In this hard time, we strive to maintain transparency and would be appreciative of your support".

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