7000 BTC stolen from Binance's hot wallet - #2safu4me

A

AF 802

Guest
kiwifarms.net

Binance, one of the largest cryptocurrency exchanges by daily trade volume, has experienced a major security breach on May 7, according to a statement shared with Cointelegraph on May 7.
Per Binance, hackers employed a variety of tactics including phishing and viruses to obtain a large number of 2FA codes and API keys in addition to other information.

According to the exchange, there was one affected transaction, wherein hackers were able to withdraw 7,000 bitcoins (BTC) worth $40,705,000 at press time.
In a letter on Binance’s website, CEO Changpeng Zhao states that the bitcoins were withdrawn from its hot wallets, which contain only 2% of the exchange’s total bitcoin holdings. Zhao states that Binance’s other wallets are unaffected.

Binance will suspend all deposits and withdrawls while it conducts a security review on its systems, which Zhao estimates will take up to one week. Trading will still be active and traders will be able to adjust their positions. Zhao states:
“Please also understand that the hackers may still control certain user accounts and may use those to influence prices in the meantime. We will monitor the situation closely. But we believe with withdrawals disabled, there isn’t much incentive for hackers to influence markets.”
Zhao adds that he will conduct a Twitter AMA in a couple of hours to field questions from the community.
Binance will use its Secure Asset Fund for Users (SAFU) to cover the incident. The exchange created the fund in July 2018 as a type of emergency insurance. Binance allocates 10% of its total trading fees to finance SAFU.
 

3119967d0c

رنج آمریکایی ها
True & Honest Fan
kiwifarms.net
Pretty funny. What I wonder about is how these guys are actually going to cash this out. You can look at the transactions and see that there's been no real attempt to hide where it's all been sent.. it's just gone into a few big wallets.
https://cryptoslate.com/more-than-7000-bitcoin-stolen-from-binance-moved-to-seven-btc-addresses/amp/

Perhaps they're just extreme HODLers, but in their position I would have at least tried to launder a few hundred of those BTC as fast as possible to ensure that I wouldn't be blocked from spending them in future. As it is, it's going to be hard to spent their winnings.

From what I understand about the current state of options for hiding the origin of bitcoin used to transact illegal services/guns/drugs/laundered money, there are a few ways that this could have been done. Centralized 'Tumblers' are out, because they likely keep logs of all transactions. But there are decentralized ways for mixing up and confusing the history of bitcoins like JoinMarket and Wasabi Wallet that make it a lot harder to track the outcome of the final transactions from the initial addresses used. Even if these methods aren't perfect privacy wise, it seems like it would have been sensible to try and keep at least some of their gains as readily spendable as possible.

Or just trade the BTC for Monero.
 

AnOminous

Really?
True & Honest Fan
Retired Staff
kiwifarms.net
Perhaps they're just extreme HODLers, but in their position I would have at least tried to launder a few hundred of those BTC as fast as possible to ensure that I wouldn't be blocked from spending them in future. As it is, it's going to be hard to spent their winnings.
There's no way of blocking such spends, so if they're in a situation like they're already criminals, they don't really have to care. If there were a way of marking BTC as "stolen" or otherwise unspendable, it would completely destroy the whole point of the currency and whatever system existed after instituting such a change, it wouldn't be BTC any more.

So if they can spend it for other kinds of contraband to people who sell such things, anyone who ends up with the stolen money subsequently has no obligation to care about its origin, nor will it become unspendable for someone a dozen transactions down the road.
 
  • Agree
  • Informative
Reactions: Unog and QD 846

BlancoMailo

kiwifarms.net
Pretty funny. What I wonder about is how these guys are actually going to cash this out. You can look at the transactions and see that there's been no real attempt to hide where it's all been sent.. it's just gone into a few big wallets.
https://cryptoslate.com/more-than-7000-bitcoin-stolen-from-binance-moved-to-seven-btc-addresses/amp/

Perhaps they're just extreme HODLers, but in their position I would have at least tried to launder a few hundred of those BTC as fast as possible to ensure that I wouldn't be blocked from spending them in future. As it is, it's going to be hard to spent their winnings.

From what I understand about the current state of options for hiding the origin of bitcoin used to transact illegal services/guns/drugs/laundered money, there are a few ways that this could have been done. Centralized 'Tumblers' are out, because they likely keep logs of all transactions. But there are decentralized ways for mixing up and confusing the history of bitcoins like JoinMarket and Wasabi Wallet that make it a lot harder to track the outcome of the final transactions from the initial addresses used. Even if these methods aren't perfect privacy wise, it seems like it would have been sensible to try and keep at least some of their gains as readily spendable as possible.

Or just trade the BTC for Monero.
I'll fully admit I don't know much about this internet monopoly money but can't you send it to a hardwallet's public address and then generate new sending addresses to divide it up or something? Though I agree, the best idea seems to be to just divide it up among different blockchains with less tracking abilities for an amount that large.
 

Thought precriminal

Quota exceeded. Precrime arrest imminent.
kiwifarms.net
Or just trade the BTC for Monero.
There are decentralised exchanges like bisq and hodlhodl that promise to make your funds fungible. I haven't used either one and cannot vouch for them, however. Theoretically, if you are able to exchange tainted BTC for Monero, and then send the Monero to a wallet privately held by you, the trail will be broken.
But in practice you would probably want to include several more steps and spread out the transfer over a long period of time in order to thwart attempts by police working with crypto exchanges to get suspicious by corroboration.
 
  • Agree
Reactions: 3119967d0c

AnOminous

Really?
True & Honest Fan
Retired Staff
kiwifarms.net
There are decentralised exchanges like bisq and hodlhodl that promise to make your funds fungible. I haven't used either one and cannot vouch for them, however. Theoretically, if you are able to exchange tainted BTC for Monero, and then send the Monero to a wallet privately held by you, the trail will be broken.
But in practice you would probably want to include several more steps and spread out the transfer over a long period of time in order to thwart attempts by police working with crypto exchanges to get suspicious by corroboration.
With amounts like this there are also safety concerns. In this case, the money is covered by other profits, apparently. The exchange isn't going belly up (:optimistic:).

But it's an amount of money that would motivate someone to kill you for it, or kidnap you and cut your fingers off one by one until you type in that key, etc.
 
Tags
None

About Us

The Kiwi Farms is about eccentric individuals and communities on the Internet. We call them lolcows because they can be milked for amusement or laughs. Our community is bizarrely diverse and spectators are encouraged to join the discussion.

We do not place intrusive ads, host malware, sell data, or run crypto miners with your browser. If you experience these things, you have a virus. If your malware system says otherwise, it is faulty.

Supporting the Forum

How to Help

The Kiwi Farms is constantly attacked by insane people and very expensive to run. It would not be here without community support.

BTC: 1DgS5RfHw7xA82Yxa5BtgZL65ngwSk6bmm
ETH: 0xc1071c60Ae27C8CC3c834E11289205f8F9C78CA5
BAT: 0xc1071c60Ae27C8CC3c834E11289205f8F9C78CA5
LTC: LSZsFCLUreXAZ9oyc9JRUiRwbhkLCsFi4q
XMR: 438fUMciiahbYemDyww6afT1atgqK3tSTX25SEmYknpmenTR6wvXDMeco1ThX2E8gBQgm9eKd1KAtEQvKzNMFrmjJJpiino