The 7,000 bitcoin were withdrawn by hackers using a variety of techniques, "including phishing, viruses and other attacks", according to a post on Binance's website by chief executive officer Zhao Changpeng.
It was not until the platform's alarms went off that the management learnt about the illegal withdrawals of thousands of bitcoins with a total value of about $41,009,000. On the other hand, the market quickly recuperated from a first fall to approximately $5,500, breaking out of the $6,000 resistance level for the first time in current year.
One Bitcoin is now worth around 5,815 US dollars, making this one of the biggest and most serious breaches of a cryptocurrency exchange in recent years. They used both external and internal methods to "trap a lot of fish" and get a lot of user accounts. Binance CEO Zhao that users should be wary as hackers may still be in control of some accounts and may attempt to influence pricing.
"The transaction (was) structured in a way that passed our existing security checks". "But we believe with withdrawals disabled, there isn't much incentive for hackers to influence markets".
"We are making significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident".
"We stopped all withdrawals immediately after that", it added. A security review of the incident will take at least a week.
"Not the best of days, but we will stay transparent."However, the cryptocurrency agency said that due to the availability of emergency funds, users would not be effected.
"It would be premature to make any conclusions at this point of time..." Obviously, this attack was well prepared. This fund will be stored in a separate cold wallet. Despite the news of the hack, the market sentiment remains clearly bullish.
"Even if they are not a silver bullet, they greatly reduce both the number and average volume of credit cards theft".
"That mentioned, if we will damage $6200 for BTC, this can seemingly tag the birth of yet any other main bull prance and ought to prance hot and high, but if it's pure speculation and other assets attend disproportionately to cost created, it's seemingly no longer going to end successfully as soon as more!" Recently, there have also been reports of hacks targeting multiple investors and average account holders; these hacks are majorly carried out by individuals with carefully planned elaborate schemes.