Following Recent Hack, Binance Moves $8 Million Worth of USDT to New Cold Wallet

Binance’s recent hack has been the biggest news in the crypto ecosystem. The exchange lost 7,074 Bitcoin (BTC) worth $40 million at the time of the attack. The hacker mainly used complex technology, including fishing techniques and the implementation of viruses. The hacker obtained a large number of registered users’ API keys, Google authentication 2FA codes and other related information to carry out withdrawal operations.

Changpeng Zhao, the CEO of Binance and founder of the platform, addressed the community and talked about the hack that the company experienced. He has also talked about the possible solution and announced that the exchange will use SAFU Fund’s money to cover the funds lost.

CZ took up to Twitter to assure his customers that there is no need to FUD.

Again, we will be moving some ERC20 USDT to a new cold wallet. No need to FUD. Funds are #SAFU. https://t.co/KKEIHt0Mwu

— CZ Binance (@cz_binance) May 9, 2019

He later added:

“Sorry, this tweet went out a few minutes late as someone came to talk to me and interrupted me. You can see there is also a tx back to hot wallet.”

The wallet address that did the transaction was from 0x3f5ce5fbfe3e9af3971dd833d26ba9b5c936f0be to 0x1c0eace770a15d160a4c217bb69653d3a6db4239. Notably, the sender had a balance of about 120 million USDT.

According to Binance, the attack only affected about 2 percent of the bitcoin on its exchange; so, it can be estimated that the exchange owns 350,000 bitcoins, worth about $1.75 billion (12 billion yuan). Repeated statements have been made by Binance and Changpeng that the attack will not cause losses for users and investigations have been launched.

To reverse the negative story trend, Binance announced the launch of Margin Trading on their platform, although many have called out the exchange on it.