Hackers withdrew $40.7 million worth of bitcoins from Binance, the world biggest volume crypto exchange, announced on 7 May.
Binance founded that the hackers obtained users’ 2FA codes, API keys, and other important information. Hackers used a variety of approaches and techniques to hack the exchange. They used viruses, phishing software, and other ways. The exchange is trying hard to fix the problem and save the funds.
Binance CEO Statement
Changpeng Zhao, CEO of Binance, first tweeted that the crypto exchange will go unscheduled maintenance mode. After, hacking disclosure he informed the users that we will update shortly.
After hacking, the exchange still not identified all affected accounts. But, Zhao said that the funds are safe. The hackers attacked only Binance’s hot wallet, but other wallets safe and secure. This hot wallet contains only 2 percent of the total exchange holding coins.
The meticulous hackers were very intelligent and had a well- structured plan to implement. They implemented their plan in opportune time. But, the existing security checkers not stopped the bitcoins hacking. Whenever bitcoins withdrawal executed, the exchange stopped the all funds withdrawal immediately.
Now, all deposits and withdrawals stopped for one week in the Binance exchange.
Secure Asset Fund For Users
According to the exchange, it will use SAFU (Secure Asset Fund for Users) to handle the loss. And so, the hacking will not affect the users.
SAFU is an emergency fund which set up by Binance on July 2018. In this fund, 10 percent of every trading fee stored and used for extreme cases. The entire funds stored in exchange’s own cold wallet.
Zhao stated that all users still do trading without any trouble, but deposits and withdrawals disabled. The exchange is monitoring the problem closely. They will not allow any further choice to hackers to get more.
The CEO also thanked the users to support in a difficult time and the exchange will solve the problem very soon.
Also read: Cryptopia exchange reveals the estimation of stolen assets in the hacking
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