Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has been hacked. The exchange has confirmed that hackers stole 7,000 Bitcoin (BTC) from its hot wallet.
The hack was first reported by The Block, which cited “a person familiar with the matter” as saying that the hackers had used a variety of techniques, including phishing and viruses, to steal the funds.
Binance has since suspended all withdrawals and deposits while it conducts a “thorough security review.”
The hack is a major blow to the cryptocurrency industry, which has been trying to shed its reputation as a Wild West-like environment where hacks and scams are commonplace.
It also raises questions about the security of Binance, which has grown rapidly in recent years and is now one of the most popular cryptocurrency exchanges.
In a statement, Binance CEO Changpeng Zhao said that the exchange will use its “Secure Asset Fund for Users” (SAFU) to cover the loss. The SAFU is a “risk mitigation fund” that is used to protect users in the event of a hack or other security incident.
Zhao also said that Binance will “build something even better” in the wake of the hack.
The hack is a major setback for Binance and the cryptocurrency industry as a whole. However, it is also an opportunity for Binance to show that it can rebound from this setback and build something even better.