A blow to Bitcoin and cryptocurrency came this morning after CZ, CEO of Binance, announced the exchange was hacked to the tune of 7,000 Bitcoin, or approximately 40 million USD. The hack took place on May 7th at 17:15 UTC and was made public through a tweet and an article released by Binance itself. Although this news seems devastating and FUDsters will rally to point out the incorrectly perceived danger of Bitcoin, the attack on Binance’s cold storage wallet was relatively small as luckily it contained less than 2% of the exchange’s funds.

It was stated that the hackers used time to their advantage by practicing great patience and waiting for the right time to strike, as well as utilizing multiple accounts to make their actions seem random and less perceptible. However, this massive withdraw triggered alarms in the Binance security system as they have since frozen all withdrawals. For the next week, all deposits and withdrawals will be frozen, yet trading will continue to take place on Binance; the freeze comes to ensure that Binance is properly able to audit its entire system so that a hack of this nature and magnitude cannot possibly take place again.

After the hack, the crypto community rallied around Binance and CZ by showing support across social media. Even Justin Sun of TRON offered to personally deposit 40 million USD of Bitcoin onto Binance and buy various cryptocurrencies in a bid to keep the market stable, as well as likely enhance the value of his own coin.

At Bybit, we personally support Binance and CZ because of their transparency and commitment to customer satisfaction. We wish them a speedy recovery in this time of need. Prior to the attack, CZ had an AMA scheduled on Twitter, and in spite of everything that occurred, relatively few questions touched upon the topic of the hack, showing that the community has immense trust for the platform.

Spot exchanges, such as Binance use Hot Storage Wallets for quick, automated, transactions. At Bybit, our platform is built on the industry’s leading hierarchical deterministic cold wallet system which stores all digital assets of users and the platform. Each deposit address assigned to users is a cold wallet address. Digital asset collection and withdrawal are done through offline signatures. The withdrawal review includes all blockchain deposit records, transaction records, individual account balances and platform account balances, to safeguard the asset security of the users and the platform. In order to create a positive user experience, we have invested in more human resources to conduct withdrawals 3 times per day. We are cryptocurrency HODLers and traders, just like you, so we chose to employ the greatest level of security possible. With Bybit, your funds are always safe.

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