Hackers steal $40M in bitcoin

Mackenzie Garrity - Print  | 

Hackers stole more than $40 million worth of bitcoin on May 4 from one of the world's largest cryptocurrency exchanges, Binance, according to CNBC.

The hackers were able to steal more than 7,000 bitcoins by using a variety of attack methods. Binance said the hackers were also able to obtain some user information, including two-factor authentication codes, which are required to log in to Binance accounts.

Binance was able to track the stolen cryptocurrency back to a single wallet.

"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 company said in a statement, CNBC reports.

While trading has since resumed, Binance has suspended deposits and withdrawals on its platform. Binance is also warning users that "hackers may still control certain user accounts and may use those to influence prices."

The theft happened within Binance's "hot wallet," which stores 2 percent of its total bitcoin holdings. A "hot wallet" is connected to the internet while a "cold wallet" stores digital coins offline.

More articles on cybersecurity:

The 'CEO scam': How hospitals are training staff to recognize phishing attempts
Data breach at healthcare billing provider affects unknown number of Michigan patients
14,000 patient files stolen from Mississippi physician practice

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