Over 7000 Bitcoins were stolen from Binance in what the company describes as a “security breach”. Using a variety of methods, the hackers managed to withdraw the equivalent of around $40m in a single transaction. The exchange that this amount equates to “only” around 2% of their total Bitcoin holdings and the remaining amount is safe.
User funds have been confirmed to be covered by the SAFU fund, meaning that user funds will remain unaffected. This was after Tron CEO Justin Sun bizarrely offered to cover the $40m downfall with USDT.
Binance has vowed to maintain transparency during this process and have said they will need at least a week to carry out a thorough security review. Trading will remain unaffected, however, deposits and withdrawals will be suspended for the time being.
CEO Changpeng Zhao (CZ) earlier informed us via Twitter that any potential plan to “re-org” (essentially rollback the BTC network) will not go ahead, news that was met with a positive response from the crypto community.
The BNB token took a hit after the news broke, falling to a 2-week low of $19.60, but is looking to recover, and is back to over $21 at time of writing.
Binance image licensed via Shutterstock