Binance Resumes Bitcoin (BTC) and Crypto Trading As Competitor Cryptopia Shuts Down

The team at Binance says it has finished implementing a major security upgrade and trading is now active after a brief freeze. The crypto exchange beefed up security after hackers stole 7,000 BTC worth about $40 million on May 7.

Users can deposit funds, but Binance CEO Changpeng Zhao says withdrawals won’t be enabled until some “final tests” are complete.

Binance has frozen all API keys connected to third party trading applications. Users will have to create new keys to get the APIs up and running again. The exchange is also recommending users reset their 2FA codes.

The exchange says the hackers used a “variety of techniques” to crack the platform’s security and steal the BTC from one of its hot wallets.

“Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks…

The hackers had the patience to wait, and execute well-orchestrated 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. Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that.”

The price of Binance Coin has surged in response to the reopening, and is up 13.68% at time of publishing, according to CoinMarketCap.

Meanwhile, the embattled crypto exchange Cryptopia is shutting down for good. The exchange says many traders abandoned the platform after a hack in January that led to a loss of $16 million in Ethereum and ERC20 tokens.

“The highly publicised hack of Cryptopia’s exchange in January 2019 had a severe impact on the company’s trade. Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was in the best interests of customers, staff and other stakeholders.

The liquidators are focused on securing the assets for the benefit of all stakeholders. While this process and investigations take place, trading on the exchange is suspended.”

Cryptopia has not directly addressed complaints from users who say they are unable to withdraw their funds. They do say, however, that they are working toward the best resolution.

“We realize Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders.”

You can check out the full statement from the exchange here.

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