Binance $40 million security breach

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Tuesday afternoon saw what Binance called a “large scale security breach” on Tuesday, and it warned Binance customers that hackers had managed to steal a total of 7,000 Bitcoin. This is around $40 million (around 2% of the total Binance funds).

It actually looks like it was a hack on users’ personal accounts, using a combination of API hacks, phishing, viruses and attacks on 2FA codes to obtain access to individual users accounts. In this respect, it wasn’t a hack directly on Binance’s infrastructure (which is pretty sound) but on access to external software that users’ had enabled access to Binance.

Changpeng Zhao (CZ), founder and CEO of Binance tweeted “Have to perform some unscheduled server maintenance that will impact deposits and withdrawals for a couple hours. No need to FUD. Funds are #safu.”

Explainer:
FUD: ‘fear, uncertainty, doubt’
SAFU: ‘Secure Asset Fund for Users’ – Binance allocate 10% of all trading fees received into SAFU to offer protection to their users and their funds in extreme cases. This fund is stored in a separate cold wallet.