Updated the list of cryptocurrency exchange hacks to include Binance’s recent security breach:
- Exchange : Binance
- Amount : 7,000 BTC
Binance experienced a major breach on May 7 and the hackers were able to withdraw 7,000 bitcoins (currently over USD $40 million). Essentially the hackers were able to steal funds from Binance’s hot wallet and seemingly was done in a way to bypass all of Binance’s security checks. After the transaction was detected, all withdrawals and deposits were immediately suspended while Binance investigates.
According to Binance’s own announcement, the hackers used several tactics of phishing and viruses - which allowed them to obtain a large amount of 2FA codes and API keys. They also mentioned other info had been jeopardised, which we can fathom could potentially refer to customers private details being stolen also.
Lost funds will be covered by Binance’s SAFU scheme where they allocate 10% of all trading fees to protect user funds following extreme cases. And though preparing to cover stolen user funds is is a good initiative, the reality means we are going to see a huge dump of BNB by Binance to cover this USD $40 million.
Remember it is not crypto if you do not have control of your private key!