$40M stolen by Bitcoin hackers in cyber breach

A colossal cyber-security breach has occurred on one of the world’s most well-known and largest cryptocurrency exchanges. It is estimated that hackers managed to steal over $40 million dollars in total, in just one single transaction. Unfortunately, it seems to pose the question: is cryptocurrency a gamble?

Where did the breach occur?

Hackers managed to steal cryptocurrency through Binance. The exchange ranks as no.4 worldwide in trading volume in cryptocurrency.  The CEO of the company, Changpeng Zhao, said that it was clear that the attack had been very well-orchestrated, and the hackers had taken their time in order to carry out.

How did the hackers steal Bitcoin?

In a statement released shortly after it was revealed that this staggering amount of cryptocurrency had been stolen, Zhao said that the hackers had used a number of techniques in order to take the Bitcoin. Techniques included using viruses, phishing as well as using multiple seemingly independent accounts online.

What did hackers target?

It is worth mentioning that not all of Binance’s wallets have been affected by this security breach. Specifically, hackers attacked the firm’s ‘hot wallet’. This wallet is connected to the internet, and the CEO of the company stated that he thought it holds approximately 2 percent of the exchange’s overall bitcoin holdings.

Will Binance recover quickly after this recent hack?

Whilst the attack is a major blow for the cryptocurrency exchange, there is a light at the end of the tunnel: all other Binance wallets remain secure and completely unharmed by the hackers attack.

What will the attack mean for Binance customers?

For those affected by the attack on Binance’s ‘hot wallet’ by the cybercrooks, the exchange has said it will ensure that all losses will be recovered in full.

However, whilst a security review takes place on the firm after this damaging attack, Binance will be suspending deposits and withdrawals for the time being. It is estimated that this will take around a week for the security review to be completed.

What is the impact on Binance?

As previously mentioned, Binance typically ranks as no.4 worldwide in rankings. However, after the theft, there has been a 26 per cent drop in trades in the 24 hours after it occurred, which has seen its ranking drop to no.13.