Published: Fri, May 10, 2019
Money | By Ethel Goodwin

Hackers steal $40m from Bitcoin vault

Hackers steal $40m from Bitcoin vault

Binance has been struck by a tragedy lately, and Changpeng Zhao made sure to address what happened just to make things as clear as possible for users.

After the attack, the exchange received massive support from the crypto community - both from the traders and its peer exchanges. More than $500 million was hijacked from Japanese exchange Coincheck early a year ago. A wallet is a digital means of storing cryptocurrency. However, the Binance Coin or BNB is down by more than 5% which is a genuine movement keeping in mind the hack.

According to industry publication CoinDesk, major cryptocurrencies including Bitcoin took a hit as a result of the news-though the hack followed a Bitcoin rally of about nine per cent over the past week. Thus, the history of hacking and stealing of cryptocurrency was started in 2014 which toppled Mt. Gox. By February of that same year, it was declaring bankruptcy.

Binance sets aside funds in what has been dubbed a #SAFU account, so the loss will be entirely covered at no expense to users. A trustee Nobuaki Kobayashi is now in possession of over 141,000 BTC and 142,000 BCH and is supposed to return them to their rightful owners.

The crypto market is still coming to grips with the news of the hack and the discussions are ongoing regarding the implications of Zhao's statement about the Bitcoin rollback. "Researchers in the U.S. said that in the first month of this year there was about US$1.2 billion worth of cryptocurrencies lost in hacks and fraud". This was denied and the blame was laid squarely on BitGrail.

So far, the hack has been handled by the exchange quite transparently. The hack happened in August 2016 when more than 120,000 bitcoins were stolen causing the value of BTC to plummet within hours of the attack. "In practice, many of them do not do this properly", he said. This lead to Japan's FSA to carry out an investigation of the incident. "It was unfortunate that we were not able to block this withdrawal before it was executed", Binance said in a security breach statement.

"The last time Factor's benchmark weekly MA was in the current profile of turning from down to up was in Nov 2015 just as $BTC began its move from $340 to $19,800".

We're watching history repeat itself time and again.

The heist builds on an explosive growth in cryptocurrency crime and investor scams, which jumped more than 400 percent in 2018 and totaled roughly $1.7 billion in losses, according to the cybersecurity firm CipherTrace.

The post talks about a "large scale security breach" which was discovered by the company's security team.

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