Crypto exchange Binance falls victim of $41m hack
One of the largest cryptocurrency exchanges, Binance, was the victim of hackers this week when it saw $41 million worth of bitcoin being stolen from its funds.
This amounted to around 7,000 bitcoin in total, which were taken through phishing, viruses and other attacks, according to the firm’s CEO Zhao Changpeng. Other methods and accounts may have been involved, and the exchange is working on figuring out the whole picture.
However, it seems the attack impacted the firm’s bitcoin hot wallet only, which contained about 2% of its total bitcoin holdings. All of its other wallets are “secure and unharmed”, says the chief.
According to the firm, user funds would not be affected because the company would use its secure asset fund for users to cover the loss.
The CEO adds: “We must conduct a thorough security review. The security review will include all parts of our systems and data, which is large. We estimate this will take about one week. We will post updates frequently as we progress.”
In order to ensure the market under no influence from hackers, he concludes, deposits and withdrawals would remain suspended for a week.