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Binance Loses 7,000 BTC to Hackers

7,000 bitcoin worth more than $40.7 million were stolen from cryptocurrency exchange Binance by hackers. The company labeled the crypto heist as a “large scale security breach,” which lost possession of two-factor authentication codes and other private data. Hacker, then, had the ability to withdraw a significant amount of bitcoin.

“Well-prepared” Hacking

In a statement by Binance founder and CEO Changpeng Zhao, he said that “The hackers had the patience to wait and execute well-prepared actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed.”

There was little no cause for panic since approximately 2% of the total holding of Binance were deducted by the hackers as seen in its financial statement. “All of our other wallets are secure and unharmed,” Zhao reassured to the public. The crypto exchange suspended all its deposit and withdrawal transactions as soon as the alarm was triggered. Zhao warned the public that some of their accounts may still be accessible to the hackers.

Binance Compensation

Binance will compensate for the amount of bitcoin stolen with the Secure Asset Fund for Users, or SAFU, from its cold wallet which stores 10% of the exchange’s trading fees. “In this difficult time, we strive to maintain transparency and would be appreciative of your support,” Zhao noted.

Prices of bitcoin and Binance’s Binance Coin, or BNB, dropped by nearly 10 percent following the issue. Fortunately, bitcoin is gaining momentum again due to its bullish support.

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