Global Cryptocurrency exchange, Binance, has reveealed that it lost $40.7 million worth of BTC in security breach.
According to CEO Changpeng Zhao in a statement, “We have discovered a large scale security breach today, May 7, 2019 at 17:15:24 (UTC). 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.”
The hackers were able to withdraw 7000 BTC in this one transaction. The CEO said that the security breach only affected this transaction and it only affected its BTC hot wallet which contains about 2% of our total BTC holdings. It assured its customers that all other wallets were secure and unharmed.
The company assured customers that no user funds will be affected as it will usethe#SAFU fund to cover this incident in full.
The company says it will conduct a thorough security review which will include all parts of its systems and data and this will take about a week.
I would like to thank all the peer exchanges, wallets, security/analytic teams and other service providers for responding to us and helping us in need, and blocking transactions of fraud funds. Together, we are stronger. Will be a big FF this Friday! https://t.co/kkFcxypS1m
— CZ 🔶 Binance (@cz_binance) May 8, 2019
This is the fourth major exchange hack of the year, following Cryptopia, DragonEx and Bithumb.
