Binance lost $40.7 million to hackers, which exchange is next!!!

[ene1980]

When it looks like the market is recovering from the bear market, yet another major exchange is hacked and $40.7 million is lost, looks like there is no end for these hacks and not sure which exchange is the next target. These security breaches will impact the market in a huge way as investors will think twice before investing because none of the exchanges are safe, they might refund the users because as per the news only a small percentage of the funds are lost but what i really do not understand is that when these huge amounts of withdrawals are executed how they are passing through the internal audit and many hacks in the past were not transparent, hopefully they will provide the details on how this hack happened.

Zhao was fighting a nobody in Craig and if he could have being more careful with his internal security rather than fighting bull shit artists these hacks wont happen.
Here is the link to the article about the entire news

Edit: CZ talking about roll back and it looks like the loss is much bigger to make him so desperate, they confirmed a loss of $40 million dollars and yet claiming that they are safe  .

[pushups44]

These hacks occur with regularity, and given that Binance is one of the largest exchanges in the world, it was bound to become a victim. Fortunately, Binance has a vast majority of its cryptocurrency in cold wallets, and has established a separate fund as insurance. So the victims of these attacks will be made whole. Hopefully the perpetrators will be caught and brought to justice. This is a reminder to keep cryptocurrencies off exchanges.

[DreamStage]

Well those are some current fucked up News.
Wasn't expecting any of bad news for a long long time. This one will certainly bump on Bitcoin price.
We were just going to nicely and up again on the right track and boom this comes up now.

I wonder when there will be more secure measurements taken for such big exchanges =/

[eaLiTy]

Hopefully the perpetrators will be caught and brought to justice. This is a reminder to keep cryptocurrencies off exchanges.

Billions of dollars are lost because of these hacks and yet not a single person was brought to justice and that will be the case here too, i wish they will refund the users, the same story repeats every time and hopefully their story of just a small percentage is lost is true, looks like they have halted deposits and withdrawals for now, only time will tell when they will be active again.

what i really do not understand is that when these huge amounts of withdrawals are executed how they are passing through the internal audit and many hacks in the past were not transparent, hopefully they will provide the details on how this hack happened.

I really do not think so you will get the entire story like the rest of the exchanges that were hacked. Looks like they have stolen the user API keys to execute these orders without signaling any alarm but i am not sure how they know how much amount per withdrawal will ring an alarm, internal leaks may be .

[killat]

Of course news like this happens when price was starting to recover back up to $6000 the past couple days. Then this happens to stop that trend up. Coincidence?

[Baofeng]

These hacks occur with regularity, and given that Binance is one of the largest exchanges in the world, it was bound to become a victim. Fortunately, Binance has a vast majority of its cryptocurrency in cold wallets, and has established a separate fund as insurance. So the victims of these attacks will be made whole. Hopefully the perpetrators will be caught and brought to justice. This is a reminder to keep cryptocurrencies off exchanges.

I think hackers are really targeting Binance for a long time because it is the top crypto trading platform and obviously lots of money to steal. But it takes like a careful and coordinate attack from those hackers before they can breach their system.

@killat - I guess it's always like that, from what I noticed, everything that we are making a good run, suddenly we will hear this kind of bad news. So it's hard to say it this is coincidence or not. We have to wait for the evidence from Binance. Or for all investigators out there, they can trail the supposedly wallet address/es.

[sheenshane]

Binance exchange is one of the largest exchange but hackers were able to hack them, as what they had stated the hacker's used various techniques so I guess this is a professional hacker who stealing 7000 bitcoin on Binance exchange. There are also users accounts who affected not only Binance cold storage wallet. Still, lucky for them they will able to refund as what they have said.

[TimeBits]

Binance exchange is one of the largest exchange but hackers were able to hack them, as what they had stated the hacker's used various techniques so I guess this is a professional hacker who stealing 7000 bitcoin on Binance exchange. There are also users accounts who affected not only Binance cold storage wallet. Still, lucky for them they will able to refund as what they have said.

So Binance is taken the loss of 7000 coins, I guess that is kind of what Poloniex did back in the day to me, it took them sometime but they paid them back. I guess you can kind of rely on them, but what if there is a massive hack, how will they be able to pay back the funds? Like how would they buy back if the supply is not up for trade?

[marycrazy08]

This is terrifying not to just Binance, but to overall crypto space. Man, if Binance got hacked, who's next? Nothing is secure. This will only cause negative impact to all of us, this is one reason why institutions are scared to enter our market. It's really bad 

I need to start pulling all my coins out of exchanges now. This is scary.

[feryjhie]

it was a inside job     https://www.youtube.com/watch?v=8fvTxv46ano

why can you think of this incident because of insiders?
Based on their statement in the articles it's said “Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks.”

[7788bitcoin]

So Binance is taken the loss of 7000 coins, I guess that is kind of what Poloniex did back in the day to me, it took them sometime but they paid them back. I guess you can kind of rely on them, but what if there is a massive hack, how will they be able to pay back the funds?

It is simple they wont be able to repay anything, either way $40 million is a huge amount of money even if it is a top exchange with ample funds, the news just broke a few hours back and the entire damage will be known at a later stage, the market has responded to the news and the entire market is bleeding.

There are also users accounts who affected not only Binance cold storage wallet. Still, lucky for them they will able to refund as what they have said.

Mt. Gox was also a big exchange when the hack happened and the empty promises they gave to all the users and the fake assurance that everything is safe, still they have not refunded everyone and a lot of people have lost millions of dollars worth of coins in the current market valuation.

[CryptoBry]

When it looks like the market is recovering from the bear market, yet another major exchange is hacked and $40.7 million is lost, looks like there is no end for these hacks and not sure which exchange is the next target. These security breaches will impact the market in a huge way as investors will think twice before investing because none of the exchanges are safe, they might refund the users because as per the news only a small percentage of the funds are lost but what i really do not understand is that when these huge amounts of withdrawals are executed how they are passing through the internal audit and many hacks in the past were not transparent, hopefully they will provide the details on how this hack happened.
Zhao was fighting a nobody in Craig and if he could have being more careful with his internal security rather than fighting bull shit artists these hacks wont happen.
Here is the link to the article about the entire news

There is no question that the trust and confidence of the market bestowed on Binance can be hitting some lows on this recent development. This comes as a shock to many because we are assuming that Binance is hack-proof but hackers are many steps ahead of this game so they were able to breach the hull. I am expecting that Binance will do everything they can to prevent the same disaster from happening again...they should be hiring hackers to fight back these hackers in their own game. As to which exchange can be the next target well nobody knows on that but am sure if one exchange is belonging to the top 10 then its should be careful and should double up its own defenses at all corners.

[TimeBits]

So Binance is taken the loss of 7000 coins, I guess that is kind of what Poloniex did back in the day to me, it took them sometime but they paid them back. I guess you can kind of rely on them, but what if there is a massive hack, how will they be able to pay back the funds?

It is simple they wont be able to repay anything, either way $40 million is a huge amount of money even if it is a top exchange with ample funds, the news just broke a few hours back and the entire damage will be known at a later stage, the market has responded to the news and the entire market is bleeding.

There are also users accounts who affected not only Binance cold storage wallet. Still, lucky for them they will able to refund as what they have said.

Mt. Gox was also a big exchange when the hack happened and the empty promises they gave to all the users and the fake assurance that everything is safe, still they have not refunded everyone and a lot of people have lost millions of dollars worth of coins in the current market valuation.

oh sounds like p2p trading is the way to go!   Trusting a 3rd party is site is 2 spooky 4 me.

[Jating]

This is terrifying not to just Binance, but to overall crypto space. Man, if Binance got hacked, who's next? Nothing is secure. This will only cause negative impact to all of us, this is one reason why institutions are scared to enter our market. It's really bad 

I need to start pulling all my coins out of exchanges now. This is scary.

I hear you. And yes, it's a bit scary that one of the most trusted and reputable and secured exchanges has been hacked by $40 millions just like that. Well, not your keys not your coins, so if you are paranoid then you can pull out your funds. And that is why we also says that to leave everything on an exchange.

I'm not sure if this is another case of inside job. But then again, Binance is the top dog, would it make sense for them to hire someone with delicate and sensitive information? I doubt that.

[TimeBits]

read the last post of this https://bitcointalk.org/index.php?topic=5139147.0
Why not you yourself be the key? or just used p2p trading? Then this cannot happen.
Using proof of person.

[NeuroticFish]

read the last post of this https://bitcointalk.org/index.php?topic=5139147.0
Why not you yourself be the key? or just used p2p trading? Then this cannot happen.

While indeed people should not keep such huge amounts of money at exchanges, many do speculate and need the liquidity. And Binance was the biggest exchange by volume, so clearly the biggest funds should be there.

However, your image is unfair. Binance has lost only the hot wallet and according to them it was not too big, only 2% of all. Imagine what would have happened if hot wallet wold have been 30%...(!!)
Also it seems that Binance has a cold wallet with own funds (earned from exchange fees) exactly for this kind of situations and that wallet can cover this loss.

[TimeBits]

read the last post of this https://bitcointalk.org/index.php?topic=5139147.0
Why not you yourself be the key? or just used p2p trading? Then this cannot happen.

While indeed people should not keep such huge amounts of money at exchanges, many do speculate and need the liquidity. And Binance was the biggest exchange by volume, so clearly the biggest funds should be there.

However, your image is unfair. Binance has lost only the hot wallet and according to them it was not too big, only 2% of all. Imagine what would have happened if hot wallet wold have been 30%...(!!)
Also it seems that Binance has a cold wallet with own funds (earned from exchange fees) exactly for this kind of situations and that wallet can cover this loss.

You don`t think a hacker could get the cold wallets? or a army? some bandits could bust in and give the codes to a friend.

https://ottawacitizen.com/news/local-news/staff-at-bitcoin-business-bound-by-armed-bandits-police

[leps]

Looks like CZ from binance is not considering to look at a rollback solution https://twitter.com/cz_binance/status/1126002001093939200

It would be a very complex process and I don't think miners would come to an agreement to push this solution forward but it was scary to see that some of bitcoin devs ever considered this possibility.

[EdenHazard]

Another risk that must be face by some investors bitcoin is hacker, we don't know the solution to make us comfortable from the hacker but it's being a shadow that will pounce when we are unguarded. Binance is the large exchange so far, with this case I believe there is some users who decide to leave binance and move their asset to another exchange, and it could be seen by the decreased price of BNB. However, I can't imagine how binance hold all bitcoin, as a news said that 7000 bitcoin has been stolen and that is just 2%, 7000BTC just 2% yeah I can't imagine 100% of bitcoin which is binance exchange.

[NeuroticFish]

You don`t think a hacker could get the cold wallets? or a army? some bandits could bust in and give the codes to a friend.

I expect to see there something like multisig wallets with keys in various locations in the world. In such case your story should not yield the result you'd expect.