The largest crypto exchanges by volume, Binance has encountered a serious security breach which leads to nearly $41 million lost.

According to its announcement, the hackers executed the transactions through a large number of collected users API keys, 2FA codes, and potentially other info. As Zhao confirmed, the exchange lost 7000 Bitcoin (BTC), worth nearly $41 million.

The exchange has gone through “an unscheduled server maintenance” where they put on hold all deposits and withdrawals to review its security system for up to one week. Trading will still be available but users should be cautious as “the hackers may still control certain user accounts.”

Regarding the hacked, the only affected is a hot wallet, which contains 2% of the exchange’s total Bitcoin, while other wallets remain unharmed. CZ also stated: “the hackers had the patience to wait, and execute well-prepared actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed.”

The lost will be covered by Secure Asset Fund for Users (SAFU) and other exchanges such as Coinbase and GTFO have already blocked deposits from those hacked addresses.

In the end, Zhao added that he would join a Twitter LIVE Periscope AMA to answer questions from its users.

Back in March, the crypto exchange Bithumb announced a temporary pause of its cryptocurrency withdrawals and deposits system since they detected abnormal withdrawals through their system, as The Crypto Sight reported.