Quote from: The Pharmacist on Today at 06:06:04 AM

I've been around the crypto space long enough to know that crazy shit happens sometimes with "trusted" exchanges.

You are absolutely right, People who have been working with cryptocurrency for several years are aware of the risks even when working with such large exchanges.

And I want to remind everyone who forgot ...

Quote from: binance.zendesk.com

We have discovered a large scale security breach today, May 7, 2019 at 17:15:24.
The hackers were able to withdraw 7000 BTC in this one transaction: https://www.blockchain.com/btc/tx/e8b406091959700dbffcff30a60b190133721e5c39e89bb5fe23c5a554ab05ea

Few people really understand how exchange wallets and API trading work. When you deposit bitcoin into your account, the exchange gives you a cold address. The hot wallet is not in use.

While you are trading, the amount of the initial deposit on the cold address does not change. For example, if you deposited 1 bitcoin, but after a while you doubled your deposit, you will still see only 1BTC when checking the input address, (although the terminal will show 2BTC).

The magic begins when you need to withdraw your bitcoin. When you submit a request to withdraw your two bitcoins, the algorithm that manages the hot wallet removes 1BTC from your starting address. I'm not sure exactly how the cloud works, but the algorithm finds 1 more bitcoin and sends a total of 2 bitcoins to the address you provided.

Limitations on the maximum amount of withdrawal are needed for this algorithm to work normally, (at the same time, in order to have time to replenish the fund that covers the difference displayed in the terminal). Depending on the load, the hot wallet algorithm will usually send 50/100 bitcoins to clearing. From time to time, Binance fixes profits by sending bitcoins from a hot wallet to a cold one, or vice versa in case of covering losses.

Since withdrawal requests are processed in turn, their algorithm had to take into account the balance of the cloud fund anyway, (in order to compensate for the shortage of bitcoins by transferring funds from a cold wallet). ~~Therefore, I doubt that the withdrawal of 7000BTC, consisting of 45 addresses, was completed in one transaction.~~

It's like the David Copperfield show, a distraction and here's a reason to block withdrawals for one week...