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World’s largest crypto exchange hacked with possible losses of $500m

Following is an unedited news article from The Guardian:
Binance, the world’s largest cryptocurrency exchange, may have lost half a billion dollars after a hack of its network.

The company temporarily suspended transactions and the transfer of funds after detecting an exploit between two blockchains, a method of digital theft that has been used recently in at least one other major hack.

“The issue is contained now. Your funds are safe. We apologize for the inconvenience and will provide further updates accordingly,” Binance’s CEO, Changpeng Zhao, said in a tweet.

Binance originally said that $100m to $110m in funds were taken. Since then, CNBC has reported the crypto company has lost $570m.

In a blogpost on Friday, Binance said it was working on locking down any areas of vulnerability. “First, we want to apologize to the community for the exploit that occurred. We own this,” the company wrote. “Thanks to the assistance of all the security experts, projects, and validators, the vast majority of the funds remain under control.”

Last year Binance said that it was time for global regulators to establish rules for crypto markets. The company acknowledged at the time that crypto platforms have an obligation to protect users and to implement processes to prevent financial crimes, along with the responsibility to work with regulators and policymakers to set standards to keep users safe.

Binance is just the latest crypto company to experience a targeted hack. In August Nomad, a service that allows users to send crypto tokens between different blockchains, was struck, with media reports saying it was taken for nearly $200m. Harmony, another transfer service, lost about $100m in a hack in June.

Associated Press contributed to this article

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