Hackers Steal $40.7 Million in Bitcoin from Binance Exchange

Hackers stole more than 7,000 bitcoins from one of the biggest cryptocurrency exchanges, Binance. Binance announced that a “large-scale security breach,” hackers stole not only 7,000 bitcoin—equivalent to over $40 million—but also some user two-factor authentication codes and API tokens. At 4:11am  on May 8th the hacker/hackers moved 1214 BTC ($7.16 million) to new addresses and then moved another 1337 “to 2 new addresses held by the hacker.”

This is the fourth major exchange hack of the year, following Cryptopia, DragonEx and Bithumb. The hack took place at 5:15:24PM on May 7 when hackers dragged over 7,000 bitcoin from a single Binance hot wallet into in a number of smaller wallets in a single transaction. The news came after a couple of hours of the CEO Zhao tweeted that the exchange was undertaking “some unscheduled server maintenance,” writing that “funds are #safu.” After the news was announced, Zhao tweeted that the exchange would “provide a more detailed update shortly.”

According to Binance’s statement, the breach only impacted Binance’s hot wallet, which contains roughly 2% of the exchange’s total bitcoin holdings. “All of our other wallets are secure and unharmed,” said Zhao, adding:

“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. It was unfortunate that we were not able to block this withdrawal before it was executed.”