Binance recently published a blog post in which they stated that there has been a massive security contravention into their network. On May, 7th 2019 hackers reached the users 2FA codes, API codes and other security information and around $40 million worth BTC’s were stolen.
The hackers attached the Binance system with various methods which included viruses, phishing and another way of attacks. The investigation is going on and still, things have to be unveiled, that how such a massive security collapse happened?
But this has been confirmed that only 2% of the amount has hacked of their BTC holdings. One good aspect is that Binance has built up an internal insurance system that makes sure and guarantees the entire value of hack under the SafuFund.
According to Binance to protect the users’ future interests, they have created a Secure Asset Fund for Users (SAFU). In this way, 10% of the transaction fees will be saved in a cold wallet which would be a kind of safety locker of the users. And in circumstances like these, this Fund will help Binance to satisfy their users and provide them proper service.
Binance is one of the most reputable exchanges across the globe, this is a huge setback for it and it also raises a question on the security of cryptocurrency.
Due to this security breach, it had an effect on the market. Bitcoin (BTC) dropped its price to some extent and with this, it affected the rest of the market as well.
In the meanwhile, Justin Sun, CEO of TRON has jumped in to help Binance to get out of this trouble initially. Sun in his recent tweet said that he himself will personally deposit 7000 BTC into Binance, which is almost $40 million USD. Sun tweeted:
The support of Justin Sun will help Binance to get over with this problem, but the core issue is still to be improved, which is the security collapse. Binance is a renowned exchange and it will definitely look after this issue and come up with the possible outcome.