Have you heard about the most recent Binance hacking? One of the risks that cryptocurrency exchange platforms have to deal with on a daily basis is hacking attempts. New reports indicated that Binance, one of the largest cryptocurrency exchanges in the world, has lost more than 7,000 bitcoin estimated to be worth well over $40 million.
Binance Hacking: Hackers Get Away with 7,000 Bitcoins from Binance
In a press briefing held on Tuesday, the company confirmed that hackers remotely managed to infiltrate the system and launch a large-scale security breach. This is one of the largest heist this year and cements the need for companies to come up with robust ways of securing platforms.
The cryptocurrency exchange team also revealed that the hackers managed to net user information such as two-factor authentication codes that one is required to input to gain access to the account. The loot was traced to one cryptocurrency wallet.
One of the highlights of this hack is that the criminals were patient and waited to execute multiple well-planed actions on independent accounts at the most opportune time. They also seem to have been aware of the current security checks and used that information to ensure that no transactions triggered any suspicion or alarm.
Binance team regrets that the system did not manage to identify the heinous transactions and block them. They however blocked all withdrawals but that did little to prevent the hackers from getting away with the funds. The cryptocurrency exchange platform has also revealed that the theft happened from “hot wallet” which holds up to 2% of the total bitcoin managed and owned by the exchange platform.
Digital wallet is used to store cryptocurrencies and is usually offline but a hot wallet is always connected to the internet. This made it possible for the hackers to remotely access the wallet and transfer the funds. At the time of writing, Binance has suspended all withdrawals and deposits, but you can still trade on the platform.
During the press briefing, Binance team issued a warning stating that hackers may still have control of some of the accounts and can use them to influences the prices. In a move that is meant to prevent customers from moving to other exchanges, the company said that they will cover the losses in full and no user’s funds will be affected by the hack.
Surprisingly, the hack happened after a commendable increase in price of bitcoin. The price of one bitcoin has increased by more than 9% over the last one week.
The news of Binance hacking and bitcoin worth more than $40 million getting lost has shocked the industry to its core. The cryptocurrency exchange has one of the most robust security system but it seems the hackers are getting smarter and using advanced system to circumvent the security protocols. More needs to be done to prevent such incidents occurring in other crypto exchange platforms. Read more cryptocurrency news here.