Recently, Binance suffered a security breach, and 7000 BTC has been stolen from its hot wallets. In an official statement, the company outlined several security changes it has installed which they are hopeful will prevent another hack in the future. This has sparked many memes on Binance, ‘Funds are SAFU’.
However, this is a big cause for concern as hackers can also breach a leading cryptocurrency exchange and stole a large sum. This has proved an underlying fact that no centralized exchange is safe and hackers can access information. So, it is advisable that users should store their own cryptocurrencies to protect themselves.
However, in a recent Binance post, the company is said on the security breach. They have made several significant changes to its API, 2FA, and withdrawal authentication process. In their post, they also mentioned these are the areas that were exploited by the hackers in the attack.
In light of this attack, Binance has increased its security in KYC procedures, user behavior, and Risk management. Backend security measures are also introduced as well. Plus, the company are adding new hardware device support in the coming months.
The exchange said that the impact of the hack was marginal. 7000 BTC was stolen all in a single transaction fund. The company is working with over dozens of industry security to retrieve stolen funds. There are going to reimburse the stolen funds completely via Binance’s own ‘SAFE Fund’ and users didn’t have to bear any losses.
To lighten the mood, Binance updated that the hack didn’t demotivate the team and they are in ‘fighting mode’. They believe the team will come out of this stronger and better. But we should take this as a warning that storing money in exchanges is not a hundred percent sure.