May 9 / 2019
Latest News / Blockchain news/ Crypto
katy micallef
Posted by: Katy Micallef

Over 7 thousand bitcoin stolen from Binance wallet

Bitcoin sees rise despite security breach at Binance

Binance suffered a severe blow to its security on Tuesday when hackers pilfered over $40 million worth of Bitcoin. The theft is further compounded by the loss of key user information, such as two-factor authentication codes, which are required to log in to a Binance account.

The breach should have been a serious dent to confidence in the digital currency, but bitcoin has held its nerve, remaining relatively un-phased by the large-scale theft of over 7,000 bitcoin.

ai blockchain  Over 7 thousand bitcoin stolen from Binance wallet
Binance CEO, Changpeng Zhao.

On Thursday the price of Bitcoin hit in excess of $6,000, for the first time since November last year. The surprising good news came despite a series of recent knocks, including Binance CEO, Changpeng Zhao’s ill-advised suggestion to tamper with blockchain history and undo the theft, a move which was met with widespread condemnation.

The industry also weathered an ill wind blowing in from the east, when rumours appeared to suggest that China may consider banning crypto mining in the country.

Nonetheless, Binance seems to have overcome any bumps in the road, thanks to a promise to users that the company will cover any losses resulting from the incident in full.

“The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time,” Binance said in a statement.

“The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed. Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that.”

Following a halt on withdrawals and deposits, the company has since managed to trace the stolen Bitcoin to a single wallet – a hot wallet which accounts for about 2% of the company’s total Bitcoin holdings. Trading has not been suspended, however Binance warned that “hackers may still control certain user accounts and may use those to influence prices.”

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