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Grand Theft Crypto: Hackers steal the equivalent of over US$40 million from Binance

Visual representation of Bitcoin, US$40 million Binance theft May 2019 (Source: Getty Images)
Visual representation of Bitcoin (Source: Getty Images)
Although the security breach that has just been discovered by Binance impacted the BTC hot wallet only — which contained only about 2 percent of the total BTC holdings of the exchange — the hackers managed to withdraw 7,000 BTC in a single transaction. Fortunately, Binance will cover this incident in full and no user funds will be affected.

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Although holding cryptocurrency is supposed to be safe, sometimes large-scale thefts take place and the end users can only hope that the big entities in charge can cover their losses. The latest incident that affected Binance involves — as discovered by now, but the full security review will take one week and the amount might increase — over US$40 million worth of cryptocurrency.

According to Binance, "Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks." For now, there is a single transaction connected to the attack, but it involves no less than 7,000 BTC. This transaction targeted the BTC hot wallet only. This wallet contained about 2 percent of the total BTC holdings Binance had at the time of the attack and no other wallets have been affected.

Once the aforementioned transaction has been executed, various alarms were triggered and Binance stopped all withdrawals immediately. Binance will use the SAFU fund to cover the incident, so no users funds will be affected. However, deposits and withdrawals will remain suspended during the thorough security review that is currently being conducted and is expected to last one week. 

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2019 05 > Grand Theft Crypto: Hackers steal the equivalent of over US$40 million from Binance
Codrut Nistor, 2019-05- 8 (Update: 2019-05- 8)
Codrut Nistor
Codrut Nistor - News Editor
Although I have been writing about new software and hardware for almost a decade, I consider myself to be old school. I always enjoy listening to music on CD or tape instead of digital files and I will not even get into the touchscreen vs physical keys debate. However, I also enjoy new technology, as I now have the chance to take a look at the future every day. I joined the Notebookcheck crew back in 2013 and I have no plans to leave the ship anytime soon.