Binance CEO Address Binance Community After Major Hack

Binance CEO Address Binance Community After Major Hack

Following on from the news reported yesterday of a major hack that resulted in the loss of 7000 bitcoin, Binance CEO, Chang Zhao, has responded on Twitter.

Via a Twitter live stream, he first reaffirmed to users that any funds lost as a result of the hack will be reimbursed. Stating that they have enough funds to cover it from a Secure Asset Fund for Users (SAFU fund) and there was no need for financial donations.

Their main focus now he explained was “recovering and rebuilding the system. Stating that they will need to completely “eradicate” any trace of the hack, so will now undergo a “tedious process” to ensure everything is safe.  As a result of this, users will not be able to make deposits or withdrawals from their Binance account. It is expected that this will be the case for up to a week. Other security procedures recommended for users were to reset their 2FAs and change their API. 

Chang went on to describe the situation as “unfortunate, but it is what is.”
He stated that he believed that the hack was “probably one of the most advanced” and the hackers had been “patient” in order to ensure they had caught “a lot of fish” with the hack.

Various other exchange platforms, including Coinbase, had pledged their support to the 5th largest cryptocurrency in the world.

Roll-back Rejected

Chang Zhao also noted the possibility of a roll-back, also known as re-org, of Bitcoin, a process where miners would be required to yield 51% of the hash power. As a result, this would mean that the stolen bitcoin would effectively be removed from blockchain.

While this could have been done in a couple of days, this was met with criticism from the wider crypto community, with some unhappy about what this would indicate for Binance’s authority over the crypto world. One user, WhalePanda, complained, “While we’re at it, can we please undo the Bitfinex hack and MtGox as well? F*** it, let’s just reset everything and start from 0.”

However, Chang has since stated that this will not be happening via a separate tweet. He cited concerns about larger negative implications it might have if it was done. Writing that “One, we may damage the credibility of Bitcoin” and “Two, we may cause a split in both the Bitcoin network and community. Both of these damages seemed to outweigh $40 million revenge.”

“Dealt With Different Pressures Before”

Zhao has promised to be completely transparent through the next steps taken to remedy the issue and did appear visibly shaken by the situation. He stated that “To be honest, I don’t feel that well, not that I feel sick of anything, but just it has not been a great day, but we have dealt with different pressures before.”

This will be the fifth hack of 2019, with previous victims including Cryptopia, CoinBene, DragonEx, and Bithumb. However, this attack on Binance is by far the most high profile.

Since the time of the attack, daily trading on Binance has seen a loss in daily trading volume of around 6.65%. We will keep you updated on this story as it develops.

Recently Similar News

casinoin-promotion etoro-promotion

Latest Guides

Latest News

CoinEx,Cryptocurrency,Exchange Platforms,Promotion

One Million CET to Be Given Away Over Course of June

CoinEx yesterday announce 4 different promotions that will happen throughout June that will see One Million CET to be given away. The first of these promotions began yesterday and is due to run until June 10 (UTC). After this, there will be three other promotions, some running consecutively and other concurrently, until the 20th of […]

2 June, 2020
Cryptocurrency,Ethereum,Exchange Platforms,Kraken

Kraken To Launch Ethereum USDT and Orchid (OXT) Today

Today (June 2nd) will see two new additions to the trading capabilities at Kraken with new support for Orchid (OXT) and USDT on Ethereum Trading. The first of these new additions is a native token of VPN alternative, Orchid. With the OXT token, users are able to buy bandwidth and purchase and stake the asset […]

2 June, 2020
CFD Trading Platform,Cryptocurrency,eToro,Investment

eToro Launch Simplified Fee Page

eToro has shared new of a page dedicated to their fees which promises to be “simpler, faster and clearer”. The multi-faceted trading platform drew users attention to the new page via their Twitter page this morning complete with a link to access the page. When you arrive on the page, you can see the simplification […]

1 June, 2020
CFD Trading Platform,Investment,Trading

Trade.com Highlight Big Market Events This Week

To make sure traders know what they need to look out for this week, Trade.com have outlined the big events to pay attention to as they will likely affect the market. These market events begin today at 14:00 pm (GMT) with the US ISM manufacturing PMI. This will then be followed by three other elements […]

1 June, 2020
Changelly,Cryptocurrency,Exchange Platforms

Changelly List OKB

Changelly have announced that the latest token to be added to their platform, will be the native token of another exchange platform, OKEx. This is the 3rd token from an exchange platform they have added to their selection which is made up of over 150 other tokens. This follows the listing of BUSD from Binance in December […]

31 May, 2020
Binance,Cryptocurrency,Exchange Platforms

How to Use Binance’s OTC Trading Portal

Binance have released a guide that hopes to help you to begin using their OTC trading portal. OTC services have been a popular innovation since the start of 2020 and Binance have been involved in the practice for a short while now. If you weren’t aware of this part of their service but are interested […]

31 May, 2020
Cryptocurrency,Exchange Platforms,EXMO

Third Stage of EXMO’s Price Placing Implemented

As of Monday, users of EXMO will see the third stage of their price placing changes implemented. Last week, the first stage of this process has begun and the platform have moved swiftly on to the third stage already. This will see places in 11 pairs becoming 2. The pairs that will see the changes […]

30 May, 2020
BitPanda,Exchange Platforms

BitPanda Pro Sees Range of Updates

BitPanda has updated their pro service with advanced order types and reworked mobile UI amongst other new features that the service now offers. The biggest improvement is the order types. Thanks to this, there is now the option for Good ‘til Cancelled (GtC), Good ‘til Time (GtT), Immediate or Cancel (IoC) and Fill or Kill […]

30 May, 2020