Posted on 05/08/2019 10:00:53 AM PDT by Red Badger
May 8 (UPI) -- Hackers have stolen more than $40 million worth of bitcoin from the world's largest cryptocurrency exchange, officials said.
The Binance exchange said it discovered the breach Tuesday, and learned hackers stole 7,000 bitcoins in a single transaction. The company said it will cover the incident "in full" so no users' funds will be affected.
As of early Wednesday, 7,000 bitcoins carried a value of about $41,009,000.
The multi-prong attack used phishing, viruses and other methods to breach the accounts, Binance said. Sensitive user data was also mined, officials said.
"The hackers had the patience to wait and execute well-orchestrated actions through the multiple seemingly independent accounts at the most opportune time," Binance said in a statement. "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.
Bnance said the withdrawal set off multiple alarms in the system.
"We stopped all withdrawals immediately after that," it added.
Binance is planning a security review of systems and data and said it will give updates throughout the process.
"Most importantly, deposits and withdrawals will need to REMAIN SUSPENDED during this period of time," the exchange said. "We beg for your understanding in this difficult situation."
Trading will not be suspended, but Binance cautioned that the hackers could still control certain user accounts and may use those to influence prices.
"But we believe with withdrawals disabled, there isn't much incentive for hackers to influence markets," Binance said.
Founded in 2017, Binance is a global platform that hosts trading for more than 100 cryptocurrencies. It's the world's largest cryptocurrency exchange, by trading volume.
IMO, if this is true, it should be the end of cryptocurrency because it strikes at what is supposed to be its strength.
Insider.
OOPS!
but that can’t be done. it’s totally secure. nothing can possibly go wrong, go wrong, go wrong...
Russians or Clintons or Obamas?
The developers of bitcoin are smart, but the criminals are smarter. Betting they used the anonymity to their advantage.
Hardly. See the following article.
https://thehackernews.com/2019/05/magento-credit-card-hacking.html
If we apply that logic, then the credit card payments via the internet should come to an end. Never underestimate the power of “convenience”
Isn’t enhanced blockchain security what makes bitcoin so “special”?
41mm bucks is a lot of money. I guess. For a person it certainly is.
If it’s news, then whatever it is news for, is sad. I’m sorry for the loss of the equivalent of a small family office or a rich dude.
Not sure why this is news is my convoluted point.
Bitcoin itself is very secure. The idiots running these exchanges are the ones to blame.
Saying this is a death-knell for Crypto is akin to saying robbing banks is a death-knell for the dollar.
It appears there are folks around here that do not understand how this stuff works.
This has nothing to do with bitcoin. It was an exchange, not the currency.
The block chain is immutable, and is secure. They hacked an exchange. You are confusing the bank with the dollars in the bank.
“IMO, if this is true, it should be the end of cryptocurrency because it strikes at what is supposed to be its strength.”
Crypto can be stolen just like cash in your bank account - if it is left on an exchange. A hacker can enter these exchanges just like any computer system can be entered.
The advantage of crypto is that it can transfer money, apart from government control, cross border, and (largely but not completely) anonymously.
To prevent theft, all forms of crypto must be in “cold storage.”
This means on a flash drive not connected to the internet, typically in a fireproof safe.
This is a funny story though...I have no dog in this hunt btw.
Bitcoins are only as secure as the user just like any other form of currency. It’s the blockchain that is secure. The coins themselves can’t be hacked “forged” but they can be stolen if someone gets your password or access to your account etc. as can happen with any form of currency.
What I’m really trying to say is that the strength of bitcoin is that it is secure - yet somebody stole a lot of them.
That doesn’t sound very secure.
But hey, look at the bright side: They don’t really exist anyway! :)
Depends on the blockchain too.
To prevent theft, all forms of crypto must be in “cold storage.”
This means on a flash drive not connected to the internet, typically in a fireproof safe.
Counter point: Isnt the special paper, printing and other currency controls what make the paper dollar secure?
Does not do you any good when the bank is robbed. Blockchain technology is anti-forgery controls. But if someone steals the USB stick that you have your currency stored on, or if as in this case, they rob the “bank”, It does you little good.
Currency is currency - digital or otherwise
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