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CZ Reveals That Binance Was Hacked

Leading Exchange Loses 7000 BTC

2019-05-08 07:02:31 | Jonathan Ganor

One of the world's leading exchanges, Binance has encountered a major security breach earlier. Hackers have managed to transfer 7000 BTC out of Binance's hot wallets. Hackers have managed to overcome 2FA security measures and APIs with the use of phishing tricks and viruses. This is the Bitcoin equivalent of $40 M USD. It is important to note that Binance's hot wallets only contains 2% of Binance's total funds.

As per now all deposits & withdrawals on Binance are suspended. Activity will return in 1 week.

CZ's Announcement

The hack was announced both on Binance's blog and on social media channels.

As per the announcement:

"Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

We must conduct a thorough security review. The security review will include all parts of our systems and data, which is large. We estimate this will take about ONE WEEK. We will post updates frequently as we progress.

Most importantly, deposits and withdrawals will need to REMAIN SUSPENDED during this period of time. We beg for your understanding in this difficult situation."

CZ will also conduct a Twitter AMA in a few hours to speak with the crypto community

SAFU Fund

The Secure Asset Fund for Users also known as SAFU was intended for emergencies such as this. Binance allocates 10% of all trading fees to an emergency fund. SAFU will be able to cover the $40 M USD loss with relative ease.

Community Reaction

Many across crypto Twitter have voiced their support for both CZ & Binance in its trying times. Justin Sun, the founder of TRON vowed to transfer 40 M USDT to the exchange.

Markets Reaction

News of the hack have not affected the markets too severely. Bitcoin has lost 1% in the past 24 hours and is currently trading at $5872. Binance Coin was hit a bit harder, it lost 5% of its total value and is currently trading at $21


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