Hacked 2% of Binance's BTC Holdings will be covered in “Full” by SAFU Funds, Withdrawals Halted

CEO Changpeng Zhao announced the losses will be covered in “full” by SAFU fund, further stating Bitcoin blockchain rollback won’t be pursued. Crypto market is back on track after taking a hit.

  • Deposits & withdrawals suspending for about a week while trading continues
  • Bitcoin back above $5,800 while BNB down nearly 6%

As we reported, the largest cryptocurrency exchange Binance suffered a “large scale security breach” on May 7. The hackers were able to obtain a large number” of 2FA codes, API keys among other potential info through phishing, virus, and other attacks.

7000 BTC amounting to over $40 million has been stolen as well in a single transaction.

This was the result of Binance’s BTC hot wallet being targeted that contained

“2% of Binance’s total BTC holdings.”

Binance ensures all other wallets are unharmed and secure. Moreover, Binance will be using SAFU fund – which involves 10% of trading fees – to cover the incident “in full” and further states in the official announcement that

“no user funds will be affected.”

The community is happy and commending Binance for its SAFU funds that will help to recover the losses. However, crypto trader and investor, DonAlt say this might not be good for the Binance Coin (BNB) holders as SAFU funds consist out of BNB. And in order to pay for the lost BTC he says, these BNBs might be sold out.

The exchange is currently conducting a security review that is estimated to take a week and till then deposits and withdrawals will remain suspended but trading will continue.

Hours after the breach and reporting about the incident, Binance CEO, Changpeng Zhao personally took questions from Twitter in a live video. The level of transparency and quick response is shown by Binance is being appreciated by the crypto community.

Meanwhile, Tron founder and BitTorrent CEO Justin Sun offered to support Binance depositing 7000 BTC worth USDT to buy “$BNB, $BTC, $TRX, & BTT.” However, Zhao politely declined to state that currently there is no need, adding

“We will cover the loss from the SAFU fund, there is enough. We are hurt, but not broke.”

“Appreciate the “unitedness” of our industry to fight hackers and fraud,”

said Zhao while stating that a number of partners are pledging to support Binance and exchanges like Coinbase, have pledged to block the deposits from those addresses.

Zhao also shared that he is no more considering pushing for a rollback of Bitcoin network.

Meanwhile, in response to this news, the crypto market took a drop as Bitcoin tumbled to $5,650 from $5,890 only to get back up as it trades at $5,827.

Altcoins are also in the red with BNB down 5.81 percent, as per Coinmarketcap data that has the total market at $185 billion, losing $3 billion from yesterday.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

YFI’s Andre Cronje isn’t Going Anywhere; ‘This Space Won't Get Rid of Me'

Andre Cronje, the guy behind yEarn and the popular YFI, is not leaving the cryptocurrency space any time soon, at least, “until there is...

Crypto Mom, Hester Peirce, Secures Second Term as SEC Commissioner Through 2025

The US Securities and Exchange (SEC) Commissioner Hester Peirce, aka “Crypto Mom,” has been confirmed for a second term that will last till June...

yEarn Expanding its Ecosystem to Bring in Hot DeFi Tokens into the Mix

DeFi craze continues to get hotter as the system grows. yEarn’s zero supply valueless token YFI climbed to a new high today at $5,300 and...

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend. Interestingly, despite the fact that the...

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today