Crypto Wallet Secures $50 Million Insurance for Customer Crypto Assets

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Crypto securities company Curv has bought insurance from Munich Re, covering as much as $50 million in customer losses due to malicious activity.

Crypto securities company Curv has partnered with insurance company Munich Re to obtain $50 million in coverage, according to a Curv press release on May 10.

This new insurance is designed to cover any cases in which a bad actor was able to gain access to either Curv or the customer’s shares, both of which would be needed in order to sign off on an illicit transaction. As is stated in the press release:

“Even in an extreme scenario where both networks’ shares were somehow simultaneously compromised and a transaction were initiated outside of the corporate policy, Curv’s insurance would kick in to cover the loss*.”

One notable feature of Curv’s crypto wallets is that they do not use private keys, which is a common means for a user to access their encrypted data. Adrian Bednarek, a senior security analyst at Independent Security Evaluators (ISE), recently discovered that a so-called “blockchain bandit” was stealing Ethereum (ETH) by exploiting users with weak private keys, which Bednarek describes as both “your user ID and your password at the same time.”

In contrast, Curv uses multi-party computation (MPC) protocols that reportedly do not rely on just one username/password combo (private key) for accessing secure data. Curv also provides one omni-purpose wallet rather than separate cold or hot wallets.

As recently reported by Cointelegraph, major American cryptocurrency exchange Coinbase recently disclosed its hot wallet insurance coverage, which can cover up to $255 million in the case of loss due to malicious activity.

Original source: https://cointelegraph.com/news/crypto-wallet-secures-50-million-insurance-for-customer-crypto-assets

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Hackers Withdraw 7,000 Bitcoins in Binance Crypto Exchange Security Breach

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Hackers gained access to Binance crypto exchange and took 7,000 bitcoins.

Binance, one of the largest cryptocurrency exchanges by daily trade volume, has experienced a major security breach on May 7, according to a statement shared with Cointelegraph on May 7.

Per Binance, hackers employed a variety of tactics including phishing and viruses to obtain a large number of 2FA codes and API keys in addition to other information.

According to the exchange, there was one affected transaction, wherein hackers were able to withdraw 7,000 bitcoins (BTC) worth $40,705,000 at press time.

In a letter on Binance’s website, CEO Changpeng Zhao states that the bitcoins were withdrawn from its hot wallets, which contain only 2% of the exchange’s total bitcoin holdings. Zhao states that Binance’s other wallets are unaffected.

Binance will suspend all deposits and withdrawls while it conducts a security review on its systems, which Zhao estimates will take up to one week. Trading will still be active and traders will be able to adjust their positions. Zhao states:

“Please also understand that the hackers may still control certain user accounts and may use those to influence prices in the meantime. We will monitor the situation closely. But we believe with withdrawals disabled, there isn’t much incentive for hackers to influence markets.”

Zhao adds that he will conduct a Twitter AMA in a couple of hours to field questions from the community.

Binance will use its Secure Asset Fund for Users (SAFU) to cover the incident. The exchange created the fund in July 2018 as a type of emergency insurance. Binance allocates 10% of its total trading fees to finance SAFU.

Original source: https://cointelegraph.com/news/hackers-withdraw-7-000-bitcoins-in-binance-crypto-exchange-security-breach

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