Exchange News

The Binance hack leads to a $42 million loss in BTC, don’t worry, everything is covered

It’s another dark moment for the cryptocurrency community. After years of strong security measures, the leading cryptocurrency exchange, Binance has been hacked. The Binance hack saw $42 million in BTC siphoned out of the exchange.

Since the attack, the exchange has established that 7,000 BTCs are missing from a hot wallet it manages.

According to Binance:

The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time. the transaction was 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.

Luckily, Binance said that the stolen Bitcoins account for only 2 percent of its total Bitcoin holdings. Additionally, the exchange has confirmed that funds in other wallets are secure “and unharmed.” Also, losses will be covered using funds held in SAFU (secure asset fund for users).

Although the CEO of Binance indicated that the loss will be covered in full, Justin Sun, founder, Tron, had indicated his support.

In a tweet, Sun said:

To support Binance, I will personally deposit 7000 BTC worth of USDT (40 million USDT) into Binance to buy BNB, BTC, TRX, & BTT if CZ_binance agrees.

To prevent further losses, Binance has suspended deposits and withdrawals as the investigation continues. The exchange is also coordinating with other exchanges to restrict deposits from suspicious accounts. However, trading is still open.

What about a rollback?

Changpeng Zhao (CZ), CEO, Binance, said that although a rollback on the Bitcoin blockchain is possible “within the next few days,” it will taint the credibility of Bitcoin. He added that the idea of a rollback is being taken “very cautiously.”

As usual, the crypto community gathered in groups on Twitter, Reddit, among other social media platforms, to discuss the loss.

A Redditor, while contributing to a thread about the Binance hack, noted:

Under the formal RBF (Replace-By-Fee) convention on the BTC chain, a transaction can only be replaced if the sequence numbers of its inputs are less than Max. Miners are free to ignore that convention, but the same is true of first-seen conventions.

The hack comes in the midst of another saga involving Bitfinex, Tether, and NYAG.

Do you think Binance hack will negatively affect the imminent bull run?

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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