Hackers stole $40 million from a major Bitcoin exchange

Hackers stole $40 million from a major Bitcoin exchange

Credit: ShutterstockBinance revealed on May 7 that hackers stole 7,000 bitcoin-which is worth almost $41 million at the current exchange rate-in a single transaction.

Zhao said in a live video broadcast that users should reset two-factor authentication on their Binance accounts.

This, commentators said, is testimony to Bitcoin's superiority over other cryptocurrencies; the hackers chose to steal it because they knew there was next to no chance of a reorg succeeding.

Adding his own opinion, Charlie Shrem noted that the ability for anyone to track and trace the $40 million hoard on an immutable ledger was "testament to Bitcoin's value".

This eventually allowed them to access the exchange's "hot wallet", an online cache of bitcoins readily available for customer transactions. CZ claims that the hack "impacted [their] BTC hot wallet only (which contained about 2% of [their] total BTC holdings)" and that "a$3 ll of [their] other wallets are secure and unharmed". Therefore, no user funds will be affected by this $40 million hack which of course is a pretty awesome move by the exchange and far cry from Bitfinex and their 2016 bail-in where users had to put up their own funds in order to cover the corporate losses. "Deposits and withdrawals will need to remain suspended during this period of time". In recent years, a slew of crypto exchanges have been targeted by hackers and cybercriminals.

"There may also be additional affected accounts that have not been identified yet", CZ helpfully warns.

Bnance said the withdrawal set off multiple alarms in the system.

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Analysts and traders said that was down to Binance's relatively quick response to the hack.

In its statement overnight, the company said: "Hackers were able to obtain a large number of user API keys, 2FA codes and potentially other information. If this roll-back, essentially the same as a 51% attack, was seriously discussed at any point between Binance and Bitcoin developers, then this is a very serious course of action that should now be investigated by all of us involved in the industry, to ensure the integrity from those with authority", explain Dennis.

The company will hold all withdrawals or deposits until they have confidently secured the exchange.

By 9.33am United Kingdom time, bitcoin was trading hands at $5,832.28, down 0.56 percent, according to Coin Desk.

Cryptocurrency markets have largely shrugged off the Binance hack, with bitcoin last up 1 percent at around $6,000, its highest since mid-November. At its peak, in December 2017, bitcoin was worth almost $20,000, igniting a buying frenzy that helped propel the esoteric world of cryptocurrency into the mainstream. In the event that something with that statement changes over the coming days and more wallets are found to be compromised, we will update this story.

Bitcoin's price dropped by as much as 4.2 percent in early Asian trading as news of the hack broke, although it later recovered some of its losses.

Its availability in multiple markets and user-friendly interface drew large numbers of users.

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