That's some serious thieving, which Binance has said the theft was carried out in a variety of ways from the use of malware to phishing attacks aimed at grabbing security credentials. "We are still concluding all possible methods used".
An effort to make life hard for the hackers nevertheless continues, with Zhao thanking businesses for identifying and blocking the affected funds as they move.
In a sophisticated attack that involved the coordination of multiple accounts and the unique structuring of transactions, hackers were able to evade the security checks set in place by the exchange.
Notably, hackers were able to score the now-pilfered BTC in a single transaction. "It's the responsibility of all of us, to deliver highly secure solutions and deploy networks in the right way to achieve genuine decentralization sooner rather than later - but not at the risk of the currencies long term suitability as financial products, as we're seeing with Bitcoin", said Dennis.
Binance was quick enough to ensure that it will fully compensate all the victims from its Secure Asset Fund for Users (SAFU).
The hack has only hit Binance's bitcoin hot wallet which contained about 2% of their total BTC holdings and in the light of the hack makes you realize just why exchanges keep only a small percentage of holdings on hot wallets.
In addition to the bitcoin theft, they were also able to obtain a large amount of user data, including API keys, 2FA codes, and other information.
The CEO stated: "We do have the funds to cover that $40 million so we are completely OK on the funding side". We do not need funding help.
Zhao said on Twitter that other crypto exchanges, including Coinbase, had blocked deposits from addresses linked to the hack. It was our responsibility to safeguard user funds. It plans to conduct a security review that it expects to complete within one week.
Furthermore, the company claimed that a complete security analysis and a temporary halt to all the withdrawals and deposits might take a week. "We beg for your understanding in this hard situation", the cryptocurrency company said. However, trading will continue, the exchange added.
Binance also warned that "hackers may still control certain user accounts and may use those to influence prices". We believe new to crypto investors will feel some level of "FOMO" [fear of missing out] when Bitcoin closes in around United States dollars 10,000 as this is strong proof Bitcoin did not die.
The largest digital tokens including Bitcoin slid about 3 percent after the disclosure, then recovered most of the drop.