Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has been hacked. The hack occurred on May 7, 2019, and resulted in the loss of 7,000 Bitcoin, worth approximately $40 million at the time.
This is not the first time that Binance has been hacked; in March 2018, hackers stole $30 million worth of Bitcoin from the exchange.
Binance is not the only cryptocurrency exchange to have been hacked; in fact, it is one of many. Below is a list of some of the most notable hacks in the cryptocurrency space:
• Mt. Gox: In 2014, Japanese cryptocurrency exchange Mt. Gox was hacked and 850,000 Bitcoin were stolen, worth approximately $473 million at the time.
This hack ultimately led to the demise of Mt. Gox.
• Bitfinex: In 2016, Hong Kong-based cryptocurrency exchange Bitfinex was hacked and 120,000 Bitcoin were stolen, worth approximately $72 million at the time.
• Coincheck: In 2018, Japanese cryptocurrency exchange Coincheck was hacked and 523 million NEM were stolen, worth approximately $534 million at the time.
• Zaif: In 2018, Japanese cryptocurrency exchange Zaif was hacked and 60 million Japanese Yen were stolen, worth approximately $564 thousand at the time.
It is clear that cryptocurrency exchanges are prime Targets for hackers due to the large amounts of money that are often stored on them. Binance CEO Changpeng Zhao has stated that the hack will “significantly impact” the company and that they will “need some time to recover”.
He also said that Binance will “make up” for the lost Bitcoin to its users from its own reserves.
While it is certainly possible for Binance to make up for the lost Bitcoin from its own reserves, this does not change the fact that hacks such as these are a major problem for cryptocurrency exchanges. Until these exchanges can find a way to better protect themselves from hacks, they will continue to be prime Targets for criminals looking to steal large amounts of money.