Binance resumes trading following $40M bitcoin hack

Cryptocurrency exchange Binance has resumed trading activity. Users can now cancel open orders, deposit crypto assets into their Binance account and, of course, buy and sell cryptocurrencies. You canโ€™t withdraw crypto assets to an external wallet just yet, but the company says that this feature will be available shortly.

Last week, the company suffered from a data breach that resulted in hackers stealing the equivalent of more than $40 million in bitcoin. Hackers stole API keys, two-factor codes and other information in order to transfer more than 7,000 bitcoins to their own wallets. Binance covered the bitcoins lost with its own funds.

Shortly after the company noticed the hack, the company blocked some features on the platform in order to perform a security review. In particular, withdrawals and deposits have been frozen for a week so that hackers canโ€™t steal more crypto assets.

Given that anybody can track the stolen bitcoins by looking up transactions on the bitcoin blockchain, Binance has been talking with other exchanges in order to track and freeze the stolen assets.

Binanceโ€™s own cryptocurrency BNB is currently trading up 19.6% against bitcoin compared to 24 hours ago.

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Binance pledges to โ€˜significantlyโ€™ increase security following $40M Bitcoin hack

Binance has vowed to raise the quality of its security in the aftermath of a hack that saw thieves make off with more than $40 million in Bitcoin from the exchange.

The company — which is widely believed to operate the world’s largest crypto exchange based on trading volumes — said today that it will “significantly revamp” its security measures, procedures and practices in response. In particular, CEO Changpeng Zhao wrote in a blog post that Binance will make “significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident.”

Speaking on a live stream following the disclosure of the hack earlier this week, Zhao said the hackers had been “very patient” and, in addition to targeting high-net-worth Binance users, he suggested the attack used both internal and external vectors. That might well mean phishing, and that’s an area where Zhao has pledged to work on “more innovative ways” to combat threats, alongside improved KYC and better user and threat analysis.

“We are working with a dozen or so industry-leading security expert teams to help improve our security as well as track down the hackers,” Zhao wrote. He added that other exchanges are helping as best they can to track and freeze the stolen assets.

The real focus must be to look forward, and in that spirit, Binance said it will soon add support for hardware-based two-factor-authentication keys as a method to log in to its site.

That’s probably long overdue and, perhaps to make up for the delay, Zhao said the company plans to give away 1,000 YubiKeys when the feature goes live. That’s a worthy gesture, but unless Binance is giving out a discount code to redeem on the website directly, security purists would likely recommend users buy their … Read the rest