In line with an official ‘announcement‘ published, Global leading cryptocurrency exchange by daily trade volume ‘Binance’, has experienced a serious security breach yesterday on 6th May.
According to Binance, hackers utilized a number of techniques together with phishing and viruses to obtain a large number of 2FA codes and API keys additionally to other information.
Within the ‘announcement‘ on Binance’s official web-site, CEO Changpeng Zhao states that the bitcoins were withdrawn from its hot wallets, that contain solely 2% of the exchange’s total bitcoin holdings. Zhao states that Binance’s other wallets are unaffected.
Binance can suspend all deposits and withdrawals while it conducting a security review on its systems, that Zhao estimates can take up to 1 week. Trading will still be active and traders would be able to alter their positions.
Adding further, Zhao states:
“Please also understand that the hackers might still be able to control some user accounts and might use those to influence the prices within the meantime. We are going to monitor this situation closely. However we believe with withdrawals disabled, there isn’t much incentive for hackers to influence markets.”
Zhao adds that he would also conduct a Twitter ‘AMA‘ within a few hours to field queries from the community.
Binance would use its SAFU [Secure Asset Fund for Users] to cover for the losses, for this incident. The exchange created the fund earlier in July, last year, as a type of emergency insurance. Binance allocates around 10% of its total trading fees to finance SAFU.