"Hackers stole $40 million" said Binance Bitcoin Exchange

The rest of the wallets were declared to be secure and unharmed.

"We have discovered a large scale security breach today, May 7, 2019, at 17:15:24 (UTC)".

Official notes say that "The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time".

It was not until the platform's alarms went off that the management learnt about the illegal withdrawals of thousands of bitcoins with a total value of about $41,009,000.

"Binance will use the #SAFU [Secure Asset Fund for Users] fund to cover this incident in full".

"We are making significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident".

"The transaction (was) structured in a way that passed our existing security checks".


Zhao also said that Binance had funds (insurance) to cover for this loss and assured the public that the firm will do everything possible at their disposal to make sure that everyone who was affected by the hack is duly compensated.

"Tentatively, we are looking to resume withdrawals and deposits early next week".

The codes in reference are for users to securely access the website and their digital currency wallets stored there.

Zhao also apologized for his "reorg" statement, adding, "It is my strong view that our constant and transparent communication is what sets us apart from the "old way of doing things", even and especially in tough times".

In the meantime, although trading remains active, all deposits and withdrawals have been paused to allow the exchange to carry out a comprehensive security review which is estimated to last up to a Week. At the time of the hack (Tuesday, May 7), the exchange said it expects this process to take about one week. Binance warned that other accounts could be affected. "But we believe with withdrawals disabled, there isn't much incentive for hackers to influence markets".

Coinfirm has 130 clients across the world in the cryptocurrency sector and traditional finance, from wallet providers to exchanges, as well as one of Japan's three megabanks. While many traders may view this as an opportunity to long BTC, one trader suggests otherwise. It is because of situations like this that governments have taken negative stands towards cryptocurrencies, and have straightened their regulations towards cryptocurrency exchanges.

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