Popular crypto exchange Binance faces security breach and in the event, hackers managed to steal 7,000 bitcoins. The anonymous group of hackers withdrew 7,000 bitcoins which has an estimated value of $40,705,000. The exchange says that the crackers used phishing techniques and viruses to gain access to 2FA codes and API keys. Also, they may have access to other vital information.

Binance has knowledge of this hacking incident and it is assessing the situation. The firm has released an official statement on the matter. As per the CEO, only 2% of exchanges’ total bitcoin repository is lost due to this event. The withdrawal of bitcoins was done on a hot wallet. However, other wallets remain safe.

Citing obvious security step-up Binance will suspend withdrawals on the platform for a week. However, trading will be possible in the meantime. Binance CEO says that hackers may still be active on the platforms so suspension of withdrawals will minimize the threat. To meet the loss of its funds, Binance will take help of its emergency insurance Secure Asset Fund for Users.

Crypto hacking incidents have been rising since last few weeks. Recently, some hackers used Microsoft email accounts to steal cryptocurrencies from unsuspecting victims. Also, there has been a significant rise in Ransome wares such as ShellBot and Beapy.

When a major institution like Binance gets hit by hackers, it actually gives rise to the need for implementing better security. Though 2FA codes are always better and safer, in the latest Binance hacking incident, the hackers were able to access and use the 2FA codes. So, we can hope for a more secure platform for crypto trading.