Binance hack puts a question mark on Bitcoin security

Bitcoin hackers stole $40 million in a recent cyberheist at a cryptocurrency exchange.

Binance, the Taiwanese crypto exchange is the target of these hackers. According to the statement, on Tuesday hacker made a withdrawal of around 7,000 bitcoins in a single transaction.

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Binance explained that hackers used various methods like phishing and virus to perform this attack at a large scale.

Cryptocurrency has been the prime target of the attackers. In 2014, another cryptocurrency exchange lost $460 million in a hack. Similarly, hackers stole bitcoin worth $ 72 million.

In the largest known attack, hackers stole several cryptocurrencies worth $500 million from the crypto exchange, Coincheck.

A report by the Wall Street Journal claims that more than $1.7 billion worth of cryptocurrency has been lost to the hackers. Majority of the funds belonged to the Asian crypto exchanges.

Is Bitcoin really safe?

Looking at these events, one might question the privacy and security of Bitcoin.

There is no doubt that Bitcoin is still one of the most secure and privacy-oriented currency out there. If a bitcoin user stores his keys privately, then your bitcoin is safe and secure. These keys are a set of numbers and letters which is associated to bitcoin.

However, the problem of hacking arises based on how the Bitcoin is stored, transferred and sold to one another.

Binance mentioned in their announcement that hackers implemented the hot wallet attack. Hackers obtained the API of the user accounts, their two-factor authentication codes and other info to execute the attack.

Binance generates a wallet linked to trading account. Therefore, if hackers are able to access the associated Binance account, they can easily steal the associated keys.

As mentioned above, the technology is still secure and scaling new heights. However, caution on behalf of the user is the key. After all, the crucial element remains how data storage and data transmission.

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