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Bitcoin News: Binance Hacked, Losing $40M Worth of Digital Cash

May 8, 2019 | Wednesday

Cryptocurrency

   

Binance, world's biggest cryptocurrency exchange company on Tuesday were attacked by hackers losing more than $40 million worth of bitcoin. According to Binance, the hackers took more than 7,000 bitcoin by using various attack method in order to do a "large scale security breach."

The hackers also managed to carry out a few of the user information. That includes the two-factor authentication codes required from users to log in to their Binance account.

According to Binance, they've traced the stolen bitcoins in a single wallet. In a statement, the cryptocurrency exchange company explained that the hackers did patiently wait before executing "well-orchestrated actions" on multiple users account at the most appropriate time.

The company further explained that the transaction is arranged to pass Binance's existing security requirements. Unfortunately, the company wasn't able to hinder or block the withdrawals before the breach is executed. Upon the hacker's execution, the unsecured withdrawals triggered a number of alarms forwarded to the company's system. Binance immediately blocks all ongoing withdrawals at that time.

The cryptocurrency exchange company also explained that the system breach happened within the company's "hot wallet." That part of the company's system is accountable for about 2 percent of its overall bitcoin holdings. Every wallet created in digital means functions as a digital currency storing system. The "hot wallet" is the system that is directly connected to the internet while "cold wallet" stores digital money offline.

All cryptocurrency trading within Binance is back in operation. However, deposits and withdrawals are still suspended while the company settles the impact of the event on their business.

The cryptocurrency exchange company still warns that the hackers might still have control on certain user accounts and may manipulate the prices in their system.

Binance assures to take responsibility for the incident and that no users' funds are to be affected.

   

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