Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has suspended withdrawals indefinitely.
The move comes after a “large scale security breach” that resulted in the loss of 7,000 BTC (about $40 million at current prices). Binance says it will use its “Secure Asset Fund for Users” (SAFU) to cover the lost funds.
This is not the first time that Binance has been hacked. In March 2018, the exchange lost about $30 million in BTC after a “phishing attack.
” At the time, Binance had just launched its operations and was not as well-known or widely used as it is today.
Despite the hack, Binance quickly rose to become one of the most popular cryptocurrency exchanges in the world. In 2019, it launched its own blockchain platform and native token, Binance Coin (BNB).
The exchange has also been expanding its services into other areas such as lending and margin trading.
The latest hack is a major setback for Binance and could damage its reputation. It is also likely to raise questions about the security of other cryptocurrency exchanges.
Binance has not yet announced when it will resume withdrawals. In the meantime, users can still trade cryptocurrencies on the exchange.
Why Has Binance Suspended Withdrawals?
Binance has suspended withdrawals due to a “large scale security breach.” The breach resulted in the loss of 7,000 BTC, which is about $40 million at current prices.
Binance says it will use its “Secure Asset Fund for Users” (SAFU) to cover the lost funds.