Hacking Binance: The exchange loses 7,000 bitcoins (BTC), withdrawals and deposits are suspended

The leading cryptocurrency exchange Binance reports that hackers stole 7,000 bitcoins in the amount of $ 40.5 million.

“We discovered a major security breach today, May 7, 2019, at 5:15:24 PM (UTC). Hackers managed to get a large number of user API keys, 2FA codes, and possibly other information. Hackers used a variety of methods, including phishing, viruses, and other attacks. We are still completing all possible methods. There may also be additional vulnerable accounts that have not yet been identified. ”

According to Binans, the stolen Bitcoins were withdrawn from the exchange for one transaction from a hot BTC wallet. According to the exchange, all her other wallets are safe.

“Hackers had the patience to wait and perform well-planned actions with the help of several seemingly independent accounts at the most appropriate time.

The transaction is structured in such a way that it passes our existing security checks. Unfortunately, we could not block this output before its execution.After execution, the withdrawal caused various alarms in our system. We stopped all withdrawals immediately thereafter. ”

Binance declares that it will use its Safe User Assets Fund (SAFU) to cover any losses and reimburse clients. Right now, users can log in and trade, although deposits and withdrawals are disabled.

“We need to conduct a thorough safety review. The security review will include all parts of our systems and data that are large. According to our estimates, it will take about a week. We will post updates frequently as we go.

Most importantly, deposits and withdrawals should be suspended during this time period. We ask for your understanding in this difficult situation.

We will continue to include trade, so you can adjust your position, if you want. Please also understand that hackers can still control certain user accounts and can use them to influence prices.We will closely monitor the situation. But we believe that with disabling withdrawals, hackers have no special incentives to influence the markets. ”

Binance CEO Changpen Zhao says he still plans to hold previously scheduled event “Ask me,” which should start around 8:00 pm PST.

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