Binance, the world's largest cryptocurrency exchange, has suffered a $6.3 billion heist, making it the biggest cryptocurrency theft on record. Around $3 billion worth of the affected assets have since been frozen across blockchain networks, and the exchange has begun recovering some of them, CNBC reported.
Binance has started recovering some of them, CNBC reported. The company has said it would cover customers' losses.
Binance has also said it will cover customers' losses. The company is continuing to investigate how the attackers breached its systems and gained access to its cryptocurrency wallets.
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How did the Binance hack happen?
Binance's preliminary investigation suggests that the attackers gained access to the exchange's withdrawal systems and used them to make unauthorised transfers from its crypto wallets.
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Also Read: Binance $6.3 Billion Crypto Heist: How Hackers Pulled Off Record Theft In 20 Minutes
The exchange does not believe its private keys were compromised. Instead, attackers allegedly infiltrated a Binance engineer's laptop and used it to drain the company's 'hot' wallets, which are connected to the internet and used for transactions.
The Guardian reported that Binance had also identified additional points of breach in its systems, beyond the engineer's device. The company has not yet completed its investigation.
The incident has renewed concerns about the security of cryptocurrency exchanges and the risks involved in storing digital assets on platforms connected to the internet.
Also Read: Binance $6.3 Billion Crypto Heist: How Hackers Pulled Off Record Theft In 20 Minutes
How can you protect your money in cryptocurrency?
The Binance breach is a reminder that crypto investments carry security risks, even when assets are held on major exchanges. While no security measure can eliminate the risk of a hack, a few precautions can help protect your holdings.
Research the exchange: Before using a cryptocurrency platform, check its regulatory status, security practices and history of customer complaints. Do not assume that a large exchange is automatically safe.
Secure your account: Use a strong, unique password and enable two-factor authentication. Avoid keeping more funds on an exchange than you need for trading or short-term transactions.
Understand how crypto wallets work: A crypto wallet allows you to access and manage your digital assets through the keys linked to them. Secure your wallet with a PIN, password or biometric authentication, wherever available.
Be careful when connecting to decentralised apps: Do not approve wallet connection requests or transaction permissions without checking the website and the access being requested. Malicious apps and browser prompts can be used to gain access to your wallet or assets.
Consider self-custody: Some exchanges offer options that allow users to hold their own private keys rather than leave control of their assets with the platform. This gives users greater control, but also makes them responsible for securing their keys and recovery details.
Never store your recovery phrase or master password in easily accessible places such as notes apps, email drafts or screenshot folders. Anyone who gets hold of these details may be able to access your wallet.
Use a cold wallet: Hardware or cold wallets store private keys offline when they are not being used for transactions. They can be an option for investors who want to keep a large share of their holdings away from internet-connected systems.
These steps can reduce exposure to some common security threats, but they cannot guarantee that cryptocurrency holdings will be safe from theft
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