Wednesday, May 8th 2019

Crypto Exchange Binance Hacked, $40M+ Stolen in Bitcoin

This is a pretty high-profile heist, as heist come, since Binance is actually the rworld's biggest crypto exxchange in terms of traded volume. The act was reported by Binance as a well-conducted orchestra, with hackers using seemingly unconnected accounts at the most opportune time to achieve a single, high-value withdrawal of $41M (roughly 7,000 Bitcoin at current pricing) - only 2% of Binance's total value in their so-called "hot wallet".

The hackers also took away with several information on users' accounts: a large number of user API keys, 2FA codes, and "potentially other info" were taken besides the cool $41M in Bitcoin. Binance CEO Changpeng Zhao warned that the hackers could still be controlling enough relevant accounts that could allow them to influence pricing and make even more money.
Sources: Binance, TechSpot
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26 Comments on Crypto Exchange Binance Hacked, $40M+ Stolen in Bitcoin

#1
NdMk2o1o
Oh another hack of millions of $ worth of Bitcoin, I remember people hailing it as safer than cash and online banking, another inside job no doubt.
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#2
Unregistered
Not your keys, not your bitcoin as they say.

No exceptions.

Still a long way from people grasping this concept it seems.
#3
Darksaber
W1zzard's Sidekick
Damn, good thing I am no longer in the crypto trading space. I used them for the longest time.
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#4
kastriot
LoL happy days, happy days.
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#5
NdMk2o1o
Not reallly happy days for those people who lost, regardless of what you think of crypto, theft is theft anfd it's not nice to be on the receiving end of it.
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#6
Vya Domus


Couldn't help myself. Nice memes.
Posted on Reply
#7
CrAsHnBuRnXp
Oh yeah. Bitcoin seems SOOOOOOOOOOOOOOOO worth it...
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#8
verycharbroiled
yakk
Not your keys, not your bitcoin as they say.

No exceptions.

Still a long way from people grasping this concept it seems.
This. If you day trade youre forced into keeping some on an exchange, but be prepared to lose it.

Hardware or paper wallet is considered the gold standard for safety. But a well vetted software only wallet is still preferable to keeping coin on an exchange or Web wallet.
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#9
Mescalamba
CrAsHnBuRnXp
Oh yeah. Bitcoin seems SOOOOOOOOOOOOOOOO worth it...
Well, 41M USD for some at least. :D

NdMk2o1o
Oh another hack of millions of $ worth of Bitcoin, I remember people hailing it as safer than cash and online banking, another inside job no doubt.
Hm, think its pocket money compared to how much Wells Fargo either defrauded, scammed or downright stole from their customers (including ppl that didnt even knew they are customers :D).

So, think BTC is just about same when it comes to safety.. Crypto is safer, especially some. Especially in cold wallet. Just not all crypto, just not one in hot wallet on exchange. :D
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#10
R-T-B
NdMk2o1o
Oh another hack of millions of $ worth of Bitcoin, I remember people hailing it as safer than cash and online banking, another inside job no doubt.
yakk
Not your keys, not your bitcoin as they say.

No exceptions.
This. Always this. If you don't have the keys you don't own the car. Similar with bitcoin. People saying bitcoin is unsafe because they used an exchange as a wallet (basically leaving your car keys covertly hidden on the street would be the best analogy) don't understand bitcoin.

CrAsHnBuRnXp
Oh yeah. Bitcoin seems SOOOOOOOOOOOOOOOO worth it...
If managed properly, I trust the number to be there at the end of the day more than I trust a bank, yes. It's math really.

The economic value fluctiating like a rabid weasel doing hurdles doesn't help though...
Posted on Reply
#11
Basard
Do any of these crypto thieves ever get caught?

R-T-B
If managed properly, I trust the number to be there at the end of the day more than I trust a bank, yes.
Sure, if managed properly..... But when was the last time $40m was 'hacked' from a bank?
Posted on Reply
#12
R-T-B
Basard
Sure, if managed properly..... But when was the last time $40m was 'hacked' from a bank?
I'm certain it has happened, usually involving a bit more conventional... hacking.

It's called robbery.

At any rate, banks are insured is the difference. So you don't feel it. If properly mamaged a Bitcoin account is so secure it does not NEED insurance.

It's not witchcraft to manage it properly either. This is how you do it:

1.) Get your keys
2.) Never share your keys

Basard
Do any of these crypto thieves ever get caught?
No, usually not. The exchange usually ends up financially liable, and goes bankrupt.
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#13
Unregistered
Binance carrying only 2% in a hot wallet was actually quite responsible on their part. 40 million on a 2 billion+ net worth corporation might sting a bit, but is not really that significant. Depending on their transaction volume, maybe they might reduce this to 1% ...or less I would guess. In any case they will cover the 2% so the people themselves won't notice anything.

This is a relatively small amount compared to the $500 to $900+ million dollar transactions we can see on the blockchain in the past year. (which cost under $1 to move o_O)
#14
Steevo
Mescalamba
Well, 41M USD for some at least. :D



Hm, think its pocket money compared to how much Wells Fargo either defrauded, scammed or downright stole from their customers (including ppl that didnt even knew they are customers :D).

So, think BTC is just about same when it comes to safety.. Crypto is safer, especially some. Especially in cold wallet. Just not all crypto, just not one in hot wallet on exchange. :D
Wells Fargo has paid millions for their actions, who is going to pay for this?

Can we go find all the posts where it was "unhackable" cause buzzwords like distributed, block chain, encrypted and other crap was tossed around like it were gospel. Anything can be undone, hacked, broken.
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#15
Caring1
Tin foil hat time, but a Government sponsored attack and hack sounds like it could be possible, as they want people to rely on "real" banks and the money under their control.
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#16
Unregistered
Caring1
Tin foil hat time, but a Government sponsored attack and hack sounds like it could be possible, as they want people to rely on "real" banks and the money under their control.
Source code is open for everyone to read.

Every hacker worth their "salt" has tried, private & state sponsored.

Understanding how blockchain itself works discourages hacking the protocol.
#17
Caring1
yakk
Understanding how blockchain itself works discourages hacking the protocol.
But they didn't "hack" Blockchain, they hacked a hot wallet.
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#18
Unregistered
Caring1
But they didn't "hack" Blockchain, they hacked a hot wallet.
That's relatively easy if it isn't a multi-signature wallet, which I would guess it wasn't for automated deposit/withdrawl purposes. Maybe they'll donate to research & develop an automated multi-signature wallet, which could potentially solve the institutional hot wallet issue.

Bitcoin is an engineered solution, so engineers keep improving it as new threats arise.
#19
moproblems99
Basard
Do any of these crypto thieves ever get caught?



Sure, if managed properly..... But when was the last time $40m was 'hacked' from a bank?
How's this: https://www.nytimes.com/2013/05/10/nyregion/eight-charged-in-45-million-global-cyber-bank-thefts.html

Or this: https://arstechnica.com/information-technology/2017/10/wave-of-cyber-bank-heists-in-former-soviet-states-netted-40m-in-real-cash/

Or this: https://www.theverge.com/2018/11/8/18075124/north-korea-lazarus-atm-fastcash-hack-millions-dollars-stolen

another: https://www.securityweek.com/millions-stolen-russian-indian-banks-swift-attacks

Plenty of others in the $5 mil+ range.
Posted on Reply
#20
R-T-B
Steevo
Can we go find all the posts where it was "unhackable" cause buzzwords like distributed, block chain, encrypted and other crap was tossed around like it were gospel. Anything can be undone, hacked, broken.
See my post. Still is.

Steevo
Wells Fargo has paid millions for their actions, who is going to pay for this
Sounds like the exchange will.
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#21
krykry
Basard
Do any of these crypto thieves ever get caught?



Sure, if managed properly..... But when was the last time $40m was 'hacked' from a bank?
It happened in Cyprus before, gov took folks money from their bank accounts to pay denbts
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#22
notb
R-T-B
If you don't have the keys you don't own the car.
Not true. ;-)
If managed properly, I trust the number to be there at the end of the day more than I trust a bank, yes. It's math really.
But what's the point of "cold wallets" and all that?
You can store crypto safely - sure. But it gets very exposed when you use it.
It's like saying that cash is safe because you can keep it in a safe. But you need to get it out and carry around to actually use it for something, right?

The whole point of banking security is that money is enclosed in a secure environment that is used for both storing and transfers. Money is protected all the time, not just then "backed up".

You're oversimplifying this saying that cryptos are secure because blockchain is secure. Money safety is about so much more than just database technology. This "so much more" just doesn't exist in the crypto space.
Banks would be just as bad and money would be lost all the time if they weren't controlled and regulated like they are today.
yakk
Not your keys, not your bitcoin as they say.
Well, you would think so. Not your bitcoin, but maybe still your problem?
What if it's your employer's money and you're let go tomorrow?
What if it's your friend's money? You've lent him some money few days ago, but it seems he won't be able to give it back.
What if the nearby shop losts their bitcoin and closed down, so you have to walk extra 500m to the next one to buy milk?

It's not really about YOUR money. It's about money in general: about stability of economy.
As @R-T-B's said: it's about money being there at the end of the day. All the money. In the regulated system we have today money kept in banks stays there - aside from financial crises, obviously.
The frequency of incidents with cryptos is absurdly high. And it's a much smaller market as well.
Still a long way from people grasping this concept it seems.
Yeah, if only some people would be as willing to grasp the concept of money and banking (that they criticize) as eagerly as they praise cryptos...
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#23
trog100
it dosnt seem t have knocked the price much.. its now over $6000..

maybe on the way up again.. he he..

trog
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#25
R-T-B
notb
Not true. ;-)
True enough for analogy purposes.

notb
You can store crypto safely - sure. But it gets very exposed when you use it.
It's not "use" which exposes it. It's key exposure. Utilize the strong wallet encryption provided, and a strong passphrase. Cold wallets need not even factor in... that's more for exchanges.

notb
The frequency of incidents with cryptos is absurdly high.
Look at the news links provided. It's rather comparable with banking.

notb
You're oversimplifying this saying that cryptos are secure because blockchain is secure. Money safety is about so much more than just database technology. This "so much more" just doesn't exist in the crypto space.
Banks would be just as bad and money would be lost all the time if they weren't controlled and regulated like they are today.
People saying "crypto is insecure" are assuming the technology is insecure, not it's supporting infrastructure. Simply not true.
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