Binance, the world's largest cryptocurrency exchange, has fallen victim to a severe cyber attack. Preliminary estimates suggest the losses from this attack amount to $6.3 billion, which is believed to be the largest crypto hacking incident in history. Report by BBC.
Richard Teng, Co-CEO of Binance, stated that initial investigations suggest the attack may have originated from a DevOps engineer's laptop falling under the control of hackers.
However, he mentioned that this was not a simple attack carried out with a single click. Instead, the cyber attack was complexly executed using several steps and tactics.
Assuring customers, Richard Teng said, 'Your funds are safe. We are taking full responsibility for the losses incurred in this incident.'
In recent years, the cryptocurrency sector has faced a series of major cyber attacks. In these incidents, hackers have stolen vast sums of money. In most cases, investigators have blamed North Korean hackers.
Blockchain intelligence and analytics firm TRM Labs stated that several characteristics of the attack on Binance match previous North Korea-linked cyber attacks. This includes the $1.5 billion hacking incident on crypto exchange Bybit last year.
Cryptocurrency is a type of digital currency. Unlike conventional money, it has no paper notes or metal coins. It is primarily transacted through digital information.
Unlike traditional currencies, cryptocurrency is not under the direct control of any central bank or financial institution. Due to this decentralized system, it is popular among many who believe in financial freedom. However, its price fluctuates rapidly depending on buyer and seller demand, leading to high investment risks.
These transactions are verified through numerous volunteer computer networks worldwide. After verifying the authenticity of transactions using special software, they are permanently added to the blockchain.
Following the news of the cyber attack on Binance, cryptocurrency prices also saw a decline in the global market.
According to reports from various media outlets, the price of Bitcoin, the world's most popular cryptocurrency, has fallen by approximately 5% to $76,400. The AFP news agency reported that this is Bitcoin's lowest price in the last month.
Not just Bitcoin, but other popular cryptocurrencies also faced a price drop. According to Bloomberg's report, the prices of Ether, Solana, and XRP also decreased.
Amid growing concerns over cybersecurity, this attack on Binance has once again brought to the forefront the issues of security and investor confidence in the global cryptocurrency market.
—Ja. Economy/JRT
