ARTICLE
31 May 2019

Hackers Steal Bitcoin From Global Cryptocurrency Exchange

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
Binance, a global cryptocurrency exchange, reported a security breach on May 7, 2019, in which hackers seized over 7,000 bitcoin (approximately $41 million) in a single transaction.
United States Technology

Binance, a global cryptocurrency exchange, reported a security breach on May 7, 2019, in which hackers seized over 7,000 bitcoin (approximately $41 million) in a single transaction.

Binance stated that hackers obtained user information using phishing, viruses and other attacks. According to Binance, the hackers designed the single fraudulent transaction to avoid triggering its security checks. However, once the transaction was executed, Binance's security system was triggered and all withdrawals were immediately suspended.

Binance informed customers it is conducting a thorough security review that will take approximately one week. During the security review, all deposits and withdrawals will be suspended, but trading will be enabled.

Binance also noted that no user funds will be affected due to its emergency insurance fund, "Secure Asset Fund for Users" (or "SAFU").

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More