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Binance Hack: Over 7,000 BTC Lost

As the Bitcoin price tag gradually but certainly approaches the $ 6,000 mark, customers will show caution about where to exchange and store their cryptocurrencies.

As one of the biggest trading websites for cryptocurrencies ever, Binance fell victim to a hacker assault on May 7 at 7:15 pm. As you can see from the official blog entry, previously unknown users in an action stole 7,074 Bitcoin. As a consequence, the attackers were capable of accessing API keys, two-factor authentication codes, and other unspecified data.

After Hack Attack: Users do not have to stress about their Bitcoin

The attackers apparently swiped their loot in a single transaction. As Binance CEO Changpeng Zhao further assured, this is “only” the scorching wallet of the crypto exchange, the user deposits so far are well protected. As Zhao also states, the action was apparently a targeted assault:

The hackers had the patience to wait and execute well-organized actions across multiple seemingly independent accounts at the right time. The transaction is structured to pass our existing security controls. It was unfortunate that we could not block this payout before it was executed. After the execution, the withdrawal triggered various alarms in our system. After that, we stopped all payouts immediately.

However, as Changpeng Zhao assures on Twitter, the stock industry can soak up all losses from its Safu fund. Following a provision from TRON founder Justin Sun to aid cushion the circumstance, Zhao replied as follows:

Thanks for the support, really appreciate it. But currently no need. We want to cover the loss from the #SAFU fund, there is enough. We are hurt, but not broke.

We are working hard to resolve the issue so that everyone can deposit and withdraw again. Will take some time.

– CZ Binance (@cz_binance) May 8, 2019

Binance Proposes More Security Verification

Currently, the Bitcoin exchange is now setting up a 1-week safety check, through which neither deposits nor withdrawals are achievable.

However, cryptocurrency trading is not limited at this time:

We will continue to trade so you can adjust your positions if you wish. Please also understand that in the meantime the hackers still control certain user accounts and can use them for pricing. We will observe the situation closely. But we believe that with disbursements off, there is no great incentive for hackers to influence the markets.

Within the next few hours, Binance CEO Changpeng Zhao needs to face users in a Reddit AMA (Ask Me Anything). The Bitcoin price is behaving cautiously and reacts without larger spikes.

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