The Skagit Valley Herald reported the money was electronically transferred to various personal and business accounts throughout the United States during a two-day period this week. The theft was reported Thursday by city officials.
City employees have been notified that personal information may have been taken as well.
Authorities say the transfers took place between Tuesday night and Wednesday morning. The hacked Bank of America account has been frozen now.
Police and the Secret Service are investigating.
Burlington is a city of about 8,400 people about 60 miles north of Seattle.
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