Binance Hackers Steal $40 Million in Bitcoin from Major Crypto Exchange
Hackers steal over $40 million in bitcoin from Binance after bypassing existing security checks with a highly coordinated attack. The exchange covers all user losses through its secure fund while it investigates the breach.
Cryptocurrency exchange Binance confirms a large-scale security breach where hackers steal more than $40 million in bitcoin from the company's hot wallet. The attackers obtain API keys, two-factor codes, and other critical information to execute the theft of over 7,000 bitcoins. This stolen amount represents about two percent of Binance's total bitcoin holdings, while all other company wallets remain secure and unharmed.
Chief executive Changpeng Zhao describes the hackers as very patient actors who wait for the most opportune time to strike through multiple seemingly independent accounts. The transaction passes existing security checks, but it triggers various alarms immediately after execution, prompting Binance to halt all withdrawals. The company assures users that its secure asset fund for users (SAFU) covers all losses from the incident without needing outside help.
Binance keeps trading open but suspends deposits and withdrawals for about a week while it completely eradicates any trace of the hackers from its accounts and data. The exchange works with other crypto platforms to block deposits from the hacked addresses and strongly encourages all users to change their API keys and two-factor authentication. Zhao notes that a blockchain rollback is technically possible but raises significant concerns within the crypto community.