#2019 Binance Heck & Their Quick Action - That's why Binance hold No.1 Crypto Exchange

In May 2019, Binance, one of the world’s largest cryptocurrency exchanges, experienced a significant security breach in which hackers stole 7,000 bitcoins—approximately $40 million at the time—from its hot wallet. This breach was attributed to a combination of phishing, malware, and other sophisticated techniques that compromised user API keys and two-factor authentication codes .(siliconangle.com, securityweek.com)

The stolen funds represented about 2% of Binance's total bitcoin holdings, and the breach was confined to its hot wallet; other wallets remained secure. In response, Binance temporarily suspended deposits and withdrawals while conducting a comprehensive security review. The company assured users that the losses would be fully covered through its Secure Asset Fund for Users (SAFU), an emergency insurance fund established to protect users in such scenarios .(portswigger.net, securityweek.com)

Despite the severity of the incident, Binance's swift action and the availability of the SAFU fund helped maintain user confidence and mitigate potential long-term impacts on the platform's reputation.