Friday, June 9, 2023

Hackers Target Bitcoin Albeit Guaranteed Security


Hackers took $40 million of Binane’s bitcoin. This is not the first time fraudsters have targeted crypto. As the number of hackings increases, the technology proves to safeguard inadequately.

According to Binance’s announcement on Tuesday, the hackers stole over $7,000 bitcoin, or $40 million. Hackers use phishing and viruses, which the business calls a major security lapse. Binance then halted withdrawals and deposits. Binance’s emergency fund will utilize to protect its clients from any damages.

Despite the high-security claims of Bitcoin and other cryptocurrencies, they have been at the mercy of hackers. Mt. Gox, seemingly to hackers, was one of the largest cases after losing $460 million in 2014. Causing the exchange to fall through. Bitfinex hacks in 2016 with $72 million worth of bitcoin stolen. In 2018, hackers stole $500 million in digital tokens from the Coincheck exchange.

Over $1.7 billion in cryptocurrency hacks through the years and most of the cases occurred around Asia, the Wall Street Journal reported.

They should warn cryptocurrency investors that their funds may not be as safe as they think.

Robert Long, an attorney and former federal prosecutor for GreenbergTraurig, compared it to rob a bank but from afar, even from your own house. You can camouflage it by swiping money from multiple wallets in seconds.

What Occured at Binance, in a Nutshell

Fraudsters got user API keys, two-factor authentication codes, and other information to accomplish their plan and took 7,000 bitcoins in one transaction as stated by Binance.

Hot wallet’s storage connects to the internet and assets use so bitcoin can trade, impacted highly by the hack. Only 2% of Binance’s total bitcoin holdings were in its hot wallet. The latter keeps offline which refers to “cold storage”. The attack could have been more dangerous if Binance’s bitcoins were in a hot wallet.

Hackable Bitcoin Exchanges

Bitcoin security divides into two discussions. First is its technology, and second is the way bitcoins are transferred and stored.

According to Peter van Valkenburgh, research director of Coin Center’s public policy advocacy group, blockchain is a well-established record of bitcoins moving from user to user. The problem is that anyone with the same bitcoin keys as an address can use the blockchain to perform transactions. It’s safe as long as users keep their “keys” to themselves and don’t share them.

When hacking occurs, international and national law enforcement organizations assist in locating the culprits. The FBI and other US law enforcement organizations have taken action against cryptocurrency thieves and other criminals.

Nothing can be done once the bitcoin is gone. For example, Jeremy Gardner, managing partner of Ausum Ventures, said that if Binance’s security is inadequate and the value abuses and transferred to their wallet, then the coins controls by them.

Christina Jones
Christina Jones
Christina Jones is the owner and CEO of Cryptoconstellation Before starting Crytpoconstellation, Christina spent ten years as an Editor in Chief at a well-known publishing house, Editorial Planeta SL, in Madrid.

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