One of the largest cryptocurrency exchanges Binance on May 7 reported a “large scale” data breach in which unidentified hackers stole 7,000 bitcoins worth about $40 million.
In a statement, the company said hackers used variety of techniques to obtain large numbers of user API keys, 2FA codes and other info to carry out the latest heist in a long line of thefts in the digital currency space.
The theft that only impacted Binance’s BTC hot wallet wiped out about 2 percent of the company's BTC holding.
Other wallets are secure and unharmed, the exchange assured.
“The hackers had the patience to wait, and execute well-prepared actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks,” said Binance’s CEO, Changpeng Zhao.
The transaction triggered Binance's internal alarms, following which all withdrawals were frozen, Zhao added.
The exchange said that its Secure Asset Fund for Users will cover all losses and no user funds will be affected by the breach.
According to Binance, the review of the breach will take up to a week, during which all deposits and withdrawals will remain suspended. However, trading will continue, the exchange added.
At 0956 hours on May 7, bitcoin was trading at $5,896, down 3.8 percent at the exchange.
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