Security

Skeptic’s lens: Binance suffered the sixth-largest hack in history but it will take less than 2 months to earn it back

Quick Take

  • Binance, the largest cryptocurrency exchange in terms of volume, suffered the sixth largest hack in history, in which $41.2 million was stolen
  • Binance’s security system was bypassed by structuring the transaction in a way that didn’t trigger any safeguards
  • Considering that Binance brought in $78 million in profits in Q1, it will take approximately 47 days for Binance to make up what it lost in the hack
  • The all-time total of funds stolen from exchanges surpassed $1.35 billion with the Binance hack

Binance, the largest cryptocurrency exchange in terms of volume, was hacked for the first time yesterday to the tune of $41.2 million stolen. Approximately 7,070 BTC was moved from Binance’s hot wallet at 5:17pm UTC in a single transaction.

Shortly after the transaction took place, industry participants started speculating that it could have been a hack since it was the tenth-largest transaction ever coming from Binance’s hot wallet, while most of the other larger transactions came at the height of the bull market in late 2017 and early 2018.