How crypto hackers stole $58.76 MILLION worth of Bitcoin

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While this sounds bad, and it definitely is, the loss of 7,000 bitcoin is just one of many potential problems affecting the exchange and its customers.

"All of our other wallets are secure and unharmed", he said.

The Taiwan-based company, one of the world's largest crypto exchanges, announced that it discovered a "large scale security breach" Tuesday.

"The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time", explained CZ.

The Bitcoin withdrawal triggered alarms in Binance's internal system, and the halted withdrawals immediately after that.

Despite the theft, Zhao promised that users would not lose any of their funds, with the lost Bitcoins to be covered by Binance's Secure Asset Fund for Users, a mechanism set up a year ago to protect users.

The hackers were able to withdraw approximately 7077 bitcoins (BTC) in a single transaction - roughly $41.8 million at Bitcoin's current price.

"The transaction is structured in a way that passed our existing security checks", he said.

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How is the Binance hack different from other exchange hacks and how will it impact the market?

Zhao also pledged to "maintain transparency" throughout the security review and investigation and go ahead with a previously scheduled Ask Me Anything (AMA) on Twitter.

"Significant" changes related to its application programming interface (API), two-factor authentication (2FA) and withdrawal validation are being made, Binance CEO Changpeng Zhao said in a blog post published on Friday.

The codes in reference are for users to securely access the website and their digital currency wallets stored there.

The Binance team is now focused on "rebuilding and recovering the system" - a process that is estimated to take about a week to complete. In message, the company has reasoned that hackers can still control some accounts and their usage may affect the prices. It was unfortunate that we were not able to block this withdrawal before it was executed.

Since May 1, 2019, bitcoin's price has been rising, reaching a top of over $6,000. It is because of situations like this that governments have taken negative stands towards cryptocurrencies, and have straightened their regulations towards cryptocurrency exchanges.

Binance, the leading cryptocurrency exchange, has had a tough week, no doubt.

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