Cryptocurrency trading hub Binance, one of the world’s largest, has confirmed it lost about 7,000 Bitcoins (around $40 million) to hackers after its so-called “hot wallet,” i.e. one connected to the internet and used to process transactions, was breached, Bloomberg reported on Tuesday.
The hot wallet in question contained about two percent of Binance’s holdings and was robbed in a single transaction, Bloomberg wrote. Binance wrote in a statement that they were aware the hackers involved “used a variety of techniques, including phishing, viruses and other attacks,” though the company was “still concluding all possible methods used” and there may be “additional affected accounts that have not been identified yet.”
Binance said that it would cover any losses in full using its Secure Asset Fund for Users, an insurance reserve set up for this type of situation, Bloomberg wrote. The news network added that Binance said automated systems triggered an alarm during the incident, though it was unable to prevent the attack’s success, and it estimates a security review and temporary halt to all deposits and withdrawals will take a week to complete: