Finance News

Story: Secure Asset Fund for Users will be used to cover for the 7000 Bitcoin hack from Binance

By Maheen Hernandez

1 / 13

Hackers stole about 7000 Bitcoin from Binance.  This, Binance states is a security breach at a large scale.  The breach was discovered on May 07, 2019.

2 / 13

Changpeng Zhao, CEO of Binance in his letter stated that the hackers were able to gain access to API keys, two-factor authentication codes, and other information.

3 / 13

This disclosure came after Zhao tweeted about how the exchange was undertaking “some unscheduled server maintenance.”  He further added that the funds were safe.

4 / 13

Zhao stated that the exchange might not have identified all the accounts that were impacted.

5 / 13

“The hackers had the patience to wait, and execute well-prepared actions through multiple seemingly independent accounts at the most opportune time.

6 / 13

The sooner the hacking even was executed the internal alarms were executed, and Zhao stated that the exchange had actually frozen withdrawals following the discovery of the…

7 / 13

Cautions stated, “the hackers may still control certain user accounts.”

8 / 13

Binance is set to perform an “a thorough security review” thus consisting of systems and data for the next week.

9 / 13

The SAFU “Secure Asset Fund for Users” will be used to cover up for the losses, which might not impact the users per the notice.

10 / 13

The SAFU consists of 10% fund all the trading fees that are normally absorbed by the exchange.  This fund was initially launched to protect Binance's users "in extreme cases.

11 / 13

Zhao stated, “In this difficult time, we strive to maintain transparency and would be appreciative of your support.”

12 / 13

He further concluded his letter by stating that he will be participating in the “ask-me-anything.” Scheduled on Twitter.

13 / 13

The markets have until now responded to Bitcoin price post the incident.  The native currency of Bitcoin BNB is down by 8.

The Currency Analytics

Want the full story?