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December 2004

Binance Hack | Hackers Make Off With $40 Million in BTC

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Binance Hack

Binance Hack

According to Bloomberg, major cryptocurrency exchange Binance has suffered another hack. This time the hackers withdrew 7,000 Bitcoin, which values approximately $40 million USD. This is the second major breach the exchange has faced, the first being an incident in March 2018.

A notorious issue in the crypto-space, hacks have claimed $1.7 billion USD in 2018 alone.

Binance Hack

Via a post on its website, the exchange said that the hack occurred through a single transaction in a “large scale security breach.”

It furthered that the hackers used a “variety of techniques” including phishing and viruses to gather large quantities of user data. The exchange also warned that there may be additional accounts that are yet unaccounted for but have been affected.

Detailing the hack, Binance said:

“The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed. Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that.”

The hack was isolated to one wallet—Binance’s BTC hot wallet—which holds 2% of the company’s entire Bitcoin holding. It furthered that all other wallets are secure and unharmed.

The post went on to say the following:

“The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time […] We must conduct a thorough security review. The security review will include all parts of our systems and data.”

Binance Hack Security Review

This security review will take about a week, during which all deposits and withdrawals are suspended. Trading remains active, however, to allow investors to change their positions.

>> Ethereum Price Jumps 8%: CTFC Approving Futures Trading Soon?

As the news is fresh, the company is still unsure whether or not the hackers still control some accounts and could “use those to influence prices in the meantime.” Traders will be fully covered and no user funds affected, as Binance will use its emergency insurance fund called the Secure Asset Fund for Users.

Bitcoin dropped 3% in early morning trade upon the news. It has since pared those losses, however, and is currently up 0.17%, selling for $5,937 USD.

Does the Binance hack affect you? Are you concerned?

Featured Image: DepositPhotos © Kesu01

Facebook’s Libra May Cause Banks to Cut Financing to the Company

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Libra

Libra

Ever since the potential launch of Facebook’s Libra was announced by the social media behemoth, the company’s cryptocurrency project has lurched from one problem to the next. Regulators from different parts of the world had voiced their concerns about the Libra cryptocurrency, and even the President of the United States slammed Facebook in one of his famous tweets.

New Trouble?

In a new development, it has now emerged that if Facebook (NASDAQ:FB) does not take care of the regulatory issues with regards to Libra, then banks might refuse to provide services to the company.

There have been fears from central banks that Libra might try to become a replacement of fiat currency, and today, the CEO of a major bank spoke about the possibility of not providing banking services to Mark Zuckerberg’s company. Ralph Hamers, the Chief Executive Officer of ING, has stated that banks might consider that step if Facebook does not comply with all the regulatory issues. He stated that if the company does not comply with regulatory frameworks, then there is the risk of criminal activity. In such a situation, banks will probably have no other option but to pull the plug.

>> Bitfinex Wants to Subpoena Former Bank Exec Over Missing $880 Million

Hamers said, “Then we can take measures and exit the client, or not accept the client, so those are discussions you would have to have.” As everyone knows, banks are bound by stringent regulatory frameworks, and it is highly unlikely that they are going to be able to do business with a company that enters the financial system without the proper checks.

It is an understandable degree of caution from ING, and it remains to be seen if more banks come up with such statements with regards to Libra. However, it should be reiterated that Facebook had earlier stated that it is going to launch the crypto token only after meeting all the regulatory requirements.

Featured image: DepositPhotos © BiancoBlue

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Is Coinbase Launching an Initial Exchange Offering (IEO) Platform?

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Coinbase

Coinbase

The cryptocurrency exchange Coinbase has shown interest in the launch of an initial exchange offering (IEO) platform.

The huge surge in popularity that Bitcoin and other cryptocurrencies have enjoyed over the course of the past few years is due to a lot of factors. One of the most important ones is the various crypto exchanges which made it possible for millions of people to easily buy and sell these tokens.

Key Details

Among the hundreds of crypto exchanges that have been established over the years, Coinbase has proven to be one of the most influential. In a new development, Coinbase has announced that it is exploring the possibility of establishing its own initial exchange offering platform.

Over the years, the exchange has gone on to become one of the most popular exchanges in the United States and in other places. Moreover, it has been known for being at the forefront of innovation. During a conference in Asia, the company’s chief of institutional sales in Asia, Kayvon Pirestani, spoke about Coinbase’s plans. During the discussion, Pirestani stated that IEOs have proven to be an exciting new opportunity in the crypto space, and the company is considering getting in on the action at some point.

>> Facebook Libra Must Follow US Rules, Says Treasury Official

As everyone knows, the initial coin offering (ICO) has become a problematic way of raising money for crypto projects since, over the years, plenty of unscrupulous characters have indulged in scams. Hence, IEOs have now emerged as the preferred means of raising money for a project. When it comes to an IEO, the exchange reviews the projects and then gives the go-ahead for a listing.

The whole process takes place in such a way that investors are protected from any scam. In such a situation, it is only natural for an exchange like Coinbase to get into it. The company has the reputation, the infrastructural advantage, and the leverage of a large user base to make it into a success. It remains to be seen when the company announces the launch.

Featured image: DepositPhotos © dennizn

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