Bitcoin Forum

When it looks like the market is recovering from the bear market, yet another major exchange is hacked and $40.7 million is lost, looks like there is no end for these hacks and not sure which exchange is the next target. These security breaches will impact the market in a huge way as investors will think twice before investing because none of the exchanges are safe, they might refund the users because as per the news only a small percentage of the funds are lost but what i really do not understand is that when these huge amounts of withdrawals are executed how they are passing through the internal audit and many hacks in the past were not transparent, hopefully they will provide the details on how this hack happened.

Zhao was fighting a nobody in Craig and if he could have being more careful with his internal security rather than fighting bull shit artists these hacks wont happen.
Here is the link to the article about the entire news  (https://www.coindesk.com/hackers-steal-40-7-million-in-bitcoin-from-crypto-exchange-binance)

Edit: CZ talking about roll back and it looks like the loss is much bigger to make him so desperate, they confirmed a loss of $40 million dollars and yet claiming that they are safe  ::).

These hacks occur with regularity, and given that Binance is one of the largest exchanges in the world, it was bound to become a victim. Fortunately, Binance has a vast majority of its cryptocurrency in cold wallets, and has established a separate fund as insurance. So the victims of these attacks will be made whole. Hopefully the perpetrators will be caught and brought to justice. This is a reminder to keep cryptocurrencies off exchanges.

Well those are some current fucked up News.
Wasn't expecting any of bad news for a long long time. This one will certainly bump on Bitcoin price.
We were just going to nicely and up again on the right track and boom this comes up now.

I wonder when there will be more secure measurements taken for such big exchanges =/

Billions of dollars are lost because of these hacks and yet not a single person was brought to justice and that will be the case here too, i wish they will refund the users, the same story repeats every time and hopefully their story of just a small percentage is lost is true, looks like they have halted deposits and withdrawals for now, only time will tell when they will be active again.

I really do not think so you will get the entire story like the rest of the exchanges that were hacked. Looks like they have stolen the user API keys to execute these orders without signaling any alarm but i am not sure how they know how much amount per withdrawal will ring an alarm, internal leaks may be ::).

Of course news like this happens when price was starting to recover back up to $6000 the past couple days. Then this happens to stop that trend up. Coincidence?

I think hackers are really targeting Binance for a long time because it is the top crypto trading platform and obviously lots of money to steal. But it takes like a careful and coordinate attack from those hackers before they can breach their system.

@killat - I guess it's always like that, from what I noticed, everything that we are making a good run, suddenly we will hear this kind of bad news. So it's hard to say it this is coincidence or not. We have to wait for the evidence from Binance. Or for all investigators out there, they can trail the supposedly wallet address/es.

Binance exchange is one of the largest exchange but hackers were able to hack them, as what they had stated the hacker's used various techniques so I guess this is a professional hacker who stealing 7000 bitcoin on Binance exchange. There are also users accounts who affected not only Binance cold storage wallet. Still, lucky for them they will able to refund as what they have said.

So Binance is taken the loss of 7000 coins, I guess that is kind of what Poloniex did back in the day to me, it took them sometime but they paid them back. I guess you can kind of rely on them, but what if there is a massive hack, how will they be able to pay back the funds? Like how would they buy back if the supply is not up for trade?

This is terrifying not to just Binance, but to overall crypto space. Man, if Binance got hacked, who's next? Nothing is secure. This will only cause negative impact to all of us, this is one reason why institutions are scared to enter our market. It's really bad  :(

I need to start pulling all my coins out of exchanges now. This is scary.

why can you think of this incident because of insiders?
Based on their statement in the articles it's said “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.” (https://cryptobriefing.com/binance-promises-to-cover-7000-btc-lost-in-hack/)

It is simple they wont be able to repay anything, either way $40 million is a huge amount of money even if it is a top exchange with ample funds, the news just broke a few hours back and the entire damage will be known at a later stage, the market has responded to the news and the entire market is bleeding.

Mt. Gox was also a big exchange when the hack happened and the empty promises they gave to all the users and the fake assurance that everything is safe, still they have not refunded everyone and a lot of people have lost millions of dollars worth of coins in the current market valuation.

There is no question that the trust and confidence of the market bestowed on Binance can be hitting some lows on this recent development. This comes as a shock to many because we are assuming that Binance is hack-proof but hackers are many steps ahead of this game so they were able to breach the hull. I am expecting that Binance will do everything they can to prevent the same disaster from happening again...they should be hiring hackers to fight back these hackers in their own game. As to which exchange can be the next target well nobody knows on that but am sure if one exchange is belonging to the top 10 then its should be careful and should double up its own defenses at all corners.

oh sounds like p2p trading is the way to go!  ::) Trusting a 3rd party is site is 2 spooky 4 me.

I hear you. And yes, it's a bit scary that one of the most trusted and reputable and secured exchanges has been hacked by $40 millions just like that. Well, not your keys not your coins, so if you are paranoid then you can pull out your funds. And that is why we also says that to leave everything on an exchange.

I'm not sure if this is another case of inside job. But then again, Binance is the top dog, would it make sense for them to hire someone with delicate and sensitive information? I doubt that.

https://i.imgflip.com/30fbgs.jpg

read the last post of this https://bitcointalk.org/index.php?topic=5139147.0
Why not you yourself be the key? or just used p2p trading? Then this cannot happen.
Using proof of person.

While indeed people should not keep such huge amounts of money at exchanges, many do speculate and need the liquidity. And Binance was the biggest exchange by volume, so clearly the biggest funds should be there.

However, your image is unfair. Binance has lost only the hot wallet and according to them it was not too big, only 2% of all. Imagine what would have happened if hot wallet wold have been 30%...(!!)
Also it seems that Binance has a cold wallet with own funds (earned from exchange fees) exactly for this kind of situations and that wallet can cover this loss.

You don`t think a hacker could get the cold wallets? or a army? some bandits could bust in and give the codes to a friend.

https://ottawacitizen.com/news/local-news/staff-at-bitcoin-business-bound-by-armed-bandits-police

Looks like CZ from binance is not considering to look at a rollback solution https://twitter.com/cz_binance/status/1126002001093939200

It would be a very complex process and I don't think miners would come to an agreement to push this solution forward but it was scary to see that some of bitcoin devs ever considered this possibility.

Another risk that must be face by some investors bitcoin is hacker, we don't know the solution to make us comfortable from the hacker but it's being a shadow that will pounce when we are unguarded. Binance is the large exchange so far, with this case I believe there is some users who decide to leave binance and move their asset to another exchange, and it could be seen by the decreased price of BNB. However, I can't imagine how binance hold all bitcoin, as a news said that 7000 bitcoin has been stolen and that is just 2%, 7000BTC just 2% yeah I can't imagine 100% of bitcoin which is binance exchange.

I expect to see there something like multisig wallets with keys in various locations in the world. In such case your story should not yield the result you'd expect.

That's the risk of keeping all our earnings in exchange.
The reason why I keep my holdings on a hard wallet is because of the fact that every exchange is hackable these days. Let's just be observant all the time. Keep our private keys secure. People might really switch to p2p in this case.

https://pbs.twimg.com/media/D6BjqLRWsAAf5cE.jpg:large

re-org WADDA YAH MEAN BUD?
your pros
1. That only rewards people btc who do not deserve it
2. It would only encourage miners to hack more
3. p2p trading

your cons
1.  you already did
2. no you wont
3. p2p trading
4. next time you won`t be able to cover it.

https://www.youtube.com/watch?v=NHdjO24hcXk

I guess this news hasn't been confirmed yet. But even if it's true, I don't think it's too big for Binance. He may even have a few days' earnings. They won't hurt anyone.

Would you just stop spreading this issue?you are not helping the market stupid by sharing same topic all over the place

40$ million is just a small amount for a big exchange like binance,so ths question is why need the hacker take this small amount when they are capable of taking more?lol this is just nothing but another bad issue to discourage investors to continue supporting the market

another small setback in the crypto world. really sad to see something like this. what do we learn about this. no system will be ever secure, in every system is a backdoor which will be founded if you dive deep enough.

40.7 million isn't that big amount for binance i guess ::)



are you serious? being silence about those shit doesn't make anything better... lol

I completely agree with you. There is no need to panic. Binance will easily compensate. So calm down and focus your own trading. I am sure that everyone funds in secure with Binance.

I think every big exchange is targeted and hackers are just waiting for the best occasion to take action and hack one of them. Every exchange promises to have the perfect security but as we all know that doesn't exist since almost every big exchange has been hacked at a certain point even though the damage wasn't so big.

https://static.coindesk.com/wp-content/uploads/2014/02/Mt.-Gox-bitcoin-protest-Mark-Karpeles1-860x430.png
https://www.youtube.com/watch?v=ob9Ak1t09Ao
https://en.bitcoin.it/w/images/en/c/c5/MagicalTux.jpg

You should of smashed em buddy. At least you should of drank his Iced Caramel Cloud Macchiato Espresso Con Panna White Chocolate Mocha Cold Brew with Salted Cream Cold Foam Decaf Pike Place Roast Iced Blonde Almond Coffee.

For a big exchange such Binance they should have learnt from Mtgox but then it could be too early to draw conclusions unless a full report is available to the public. Damn 40 mil is a lot of money!

At the end of it all I think quality of service affects security because we want withdraws to be processed swiftly.

Here is the conclusion, When you give someone something and they give a representation of that thing back, it the real thing becomes theirs. Do not do that. Do not use banks or financial institutions, use p2p, Read the first sentence of the the white paper.


 https://pbs.twimg.com/media/D55rONlXsAEdpLH.png:large

lol @ the shmucks still trading on Binance, I suggest you put your coins in your wallet. Why do you need Big Brother to hold your wallet when you trade?

This is the biggest news I know today, but it seems it does not affect the market, so it's alright.
At least we know that Binance can still operate despite that amount of loss.

Some people have theories that it could be inside job, what do you think about that?

Are you a dumb ass to think that sharing this topic here which is known worldwide by now and covered by several international media could be silenced, $40 million is not a small amount even for an exchange like binance, open your eyes and see the situation rather than being an internet warrior supporting them at this stage, suppose your coins are stolen and the markets went down, what you will do, sit down until everything clams down while you loose your valuation. If you have not lost any money because of the inefficiency of these exchanges you can support them, that might not be the case with everyone here who are into bitcoin for a long time.

And the headlines will read "BITCOIN HACKED AGAIN FOR 40 MILLION!"

My mom: "I don`t trust bitcoin, it got hacked 15 times now"
Me: uggggggggggggggggggggggggg, nope a another bank got hacked.

I totally agree that news of hacks should be spread as far and wide as possible to warn investors of the risks of keeping funds on exchanges and to encourage exchanges to practice stronger security. I believe Binance is one of the best exchanges so if they can be hacked any exchange can be hacked.

Good riddance to Binance. It serve crypto well until it lasted.
Btw 40m isn't easy to Mt Gox too, I wondered how easy it is for Binance?

Yah super safe! they only got hacked for 7000 today.

https://pbs.twimg.com/media/D6B3B73XkAASsVG.jpg:large

Looks like he is not a person that can be trusted, he just got hacked big time and still claiming that everything is safe, i am not sure whether he is dreaming and not knowing the situation and now claiming about a roll back  ::), which will be a disaster if he is to control 51% and it is a direct attack on the network which cannot be accepted in any way possible, the long term implication and trust for bitcoin is at stake if he does anything remotely to that extent.

https://i.imgflip.com/30fh24.jpg
come on some 1 give me merit for this one. lol thanks.

Basically, am not too sure if the hack was done without the help of an insider, becasue we have seen many exchanges been hacked and at the end of the day they came out to say, the hack was as a result of an insider. Binance is known by it security and hearing such news about them make me perplex over the issue of security. Never keep your funds in an exchange.

A roll back with a re-org HAHAHAHAHHAHBAHAHHAHAHHAHAHHAHAHAHAHHAHAHAHHAHAHAHHAHAHAHHAHAHAHHAHA
Hey guys we just lost 7000 bitcoin, were going to give it to the miners so the hackers don`t get it, so you can buy it off the miners again

https://www.youtube.com/watch?v=eVFd46qABi0

CZ actually discussed the possibility of a rollback on the bitcoin network which he later denied.

Talks about the rollback and ways to do it:
https://www.pscp.tv/w/1mrGmvjpbqBJy
https://twitter.com/CoinSpice/status/1125979761728049152

Says he doesn't want it here.
https://mobile.twitter.com/cz_binance/status/1125996199041830912?s=19

The thing is he actually discussed the idea with Jihan and only then he changed his mind. He is desperate.

Which makes me think, the lost funds may not be 7k btc only. If he can discuss a crazy idea like a rollback, I don't think it is just 7k. 7k coins is only $40m. It is potato chips for binance.

I believe there is more going on. He is not ready to tell us, yet.

Lol

https://www.reddit.com/r/CryptoCurrency/comments/blyjsd/the_hack_may_be_worse_than_binance_is_letting_on/

If they lost the 7k btc, they lost the funds.

Eh, one does not claim that their platform is safe when they just got hacked $40M worth of holdings. Binance is a good platform up until this point, don't get me wrong, but the recent actions of CZ, especially his statement regarding the hack suggests otherwise. Personally I would avoid trading and using the said platform in the meantime to avoid loss of funds.

Lastly, I don't support the rollback, as any sane person who knows how everything works in bitcoin would also do.

Even if the exchange was hacked for 1 BTC, this doesn't look good from security perspective. I think too much automation lead to too much loopholes to exploit. Maybe they should use Bitmex's model of withdrawals only once a day.

You know what is another cool thing about p2p trading, no fees other than what you pay the miners in tx.

So we're meant to close our eyes and cover our ears? Sure this is bad for the market, but this also invites other exchanges to step their game up. If one of the largest exchanges could be hacked, then you can't trust any of them with your money. They have to find a way to change that.

If you want to find the bright side to this story, it's that Binance promised that user funds won't be affected. I won't trust them or any other exchange with my money, but kudos to them.

why did hackers need BTC, how do they cash it?

They cash it by something called money laundering. Let`s say I hack a exchange and get 7000 bitcoin, I could used a mixer and donate to myself on my stream or a friends stream, I could send it to 1000`s of streamers. Are you going to interrogate each one of them for receiving a donation? Now I the streamer cash out my btc into fiat or get someone else to do it on local bitcoins. They needed the btc because they see it is easier to steal than earn, the banks/governments do the same thing with interest and tax and laws, for example here in Canada only they are allowed to sell the booze and weed GANGSTER THUGS! ;)

this is a streamer https://www.ccn.com/twitch-streamer-receives-a-donation-of-20-bitcoins-while-playing-runescape someone who plays games or makes videos on a live stream.
https://www.youtube.com/watch?v=qDzF7oAeaPA 1.7 btc donation
https://www.youtube.com/watch?v=SDUKB4NWMdM  4btc donation then like 4 and 4 and 4 $73K
https://www.youtube.com/watch?v=FmHAlUnfXRY my fav bitcoin alert

also those beggers you see on all the btc gambling sites and on twitter, they could be used as mixers  ;)

How did the hackers get access to 2FA and even the API keys? This sounds so unreal especially for an exchange like Binance that has been the top most exchange and I wanted to trade few of my coins there. Now if this exchange also can hacked that means all other exchanges are just small fishes and there won't be any exchange left then.

Glad that they are willing to reimburse the customers but like Cryptopia, this is also going to take months and till then users will be stranded. Why do these exchanges act like they are doing a favor on users by paying them back? It's their duty to do so.

once again another centralized exchange proves that they are all incompetence when it comes to security and they will eventually leak your data and your money to hackers and many of them will scam you themselves by stealing your money and calling it a "hack".
it was last week that i was telling everyone that they shouldn't trust an exchange just because it is popular and has high volume.

Exchange security developers obviously have to do something, if this is not resolved soon, I am sure the hacker will break through another exchange security system. the security system in exchange must be monitored and audited frequently so the vulnerable bugs cannot be exploited by hackers.
I think all crypto currency exchange developers must work together and share information globally to fight hackers.

Binance can cover this loss for these users but i fear for the moments the smaller exchanges get hit by these abuses and cant do such things. Never hold large amounts on any exchange is still the way to go.

A sad day with Binance because the amount of 40.7 million dollars is a huge amount. I hope that it doesn't make the market fall too much. At any time, the exchanges are always the target of pursuit and Hackers attack. Therefore, trading floors must always improve their security level to reduce risks. This is also a decisive factor for investors' ability to invest because they will fear and fear to lose your money.

that is the stupidest thing that I have ever heard and that only proves that despite all the bullshit that they have been saying about bitcoin and showing themselves as "supporters of it" and "experts" they have no idea how bitcoin works.
bitcoin is not some shitcoin that THEY can request rollback every time THEY messed up. they have to accept their stupidity and start thinking of ways to pay back their customers.

Looks like CZ has lost his mind even though he is trying hard to play it cool to come up with a decision for a roll back  :D. He is a hiding the real loss and still playing cool in public that it is not a big deal which is really silly, it might be potato chips for binance and we have seen some chips breaking in the past after playing cool. To come up with a decision for a roll back, he might be really crazy to think that the entire community will accept that because CZ said so  ::).

It's at times like these that I'm extremely glad that I never keep any coins at exchanges, not even for a day or so.
I mean, it could definitely be the case that they're just revealing the tip of the iceberg and that the hack is much more severe.

I definitely wouldn't be surprised if they come out in a couple of days, mentioning that their cold storage has been compromised.

Of course they will claim they are safe because they are one of the biggest exchange in the crypto world. We should just hope for the best of the said trading platform because it also have impact on the value of bitcoin at least a little bit. We should support their statements cause that is for our own good I guess.

That is very sad, Binance has very well known exchange and one of the big crypto exchange. There is a possibility that the hackers are aiming already their intentions to hack and waiting for the opportunity to grab. Even how strong putting security level on the exchange but hackers now are getting smarter day by day.

Only 2% had lost on Binance but on us, that is a huge amount. So, they have a lot of bitcoin on their hot and cold wallet. We should not put a huge amount on exchange we should have a control to our savings wallet, not on exchange.

I've read that he discussed that (with more than only Jihan) and changed his mind. I don't know how he thought he could fork Bitcoin only to cover his mistake (although his mistake may affect the price temporarily).
But as you said, 7k is nothing for Binance and only a flea bite in the price charts.

On the other hand, the conclusion that it may be more than "just" 7k BTC missing is interesting/scary. Then the effect could be (much?) bigger. I hope CZ is not hiding too much info.

Oh I missed something in the title, The next one is Bittrex.

I do not know anything about this rollback, but if there's something that every mining community can do to stop these scammers from using those stolen bitcoins then I think the miners should use everything they have to stop those thugs from using those bitcoins stolen

Something that people are not realizing or do not want to realize:

If there is no way to reverse thefts like these, then governments will hardly accept cryptos.

It is necessary to show some kind of power to stop these scammers, and it is necessary to take very harsh measures to punish these scammers.


Are you suggesting that people should bow to these fucking scammers?

People have rights to create centralized exchange, and they should not be afraid of these fucking thieves


Do you really need to reflect before writing, are you wishing that Bittrex is the target of this fucking thieves?

this:

is spam

"Do you really need to reflect before writing, are you wishing that Bittrex is the target of this fucking thieves?" you meant these* instead of this*

Read the title of the forum.
Yes I actually maybe I do wish it be Bittrex, I can wish whatever I want. ^_^
Yes it is sad bitcoins get hacked from exchanges.

No I don`t need to reflect, ^_^ I do that enough, I am a gamer, I type like this because in between killing everyone on the other team I have little time to type, try playing quake and typing or starcraft. I am a Quaker and I make the Shakers Shake.

Only provided the formula to stop these thieves  ::)

You know my coins got hacked, and my fathers because of me. I do not wish good things upon these theives, I wish they live every persons life they stole from, just like the bankers and government.
Coins I earned and did not buy!

This will definitely have a negative impact on its reputation. Regardless of the amount, people will surely think twice before using the platform. Heard from the news that losses would be covered, and concerned people are glad to hear that. This reimbursement wouldn't happen on a decentralized exchange, afaik. which makes it all very confusing as to which has more security. On a different note, this should serve as a wake-up call to all other exchanges to heighten their security to prevent or even stop future attacks.

Again and again, the market exchange was hacked. this is like a routine schedule "market hacked" when bitcoin is in a bullish trend. is this just a drama? I don't know for sure.
I was so used to the news like this, I was not surprised anymore.
maybe the next exchange that will be hacked is KuCoin or bw.com or others  ;D

The importance of keeping your funds in Wallet and off exchanges.

And by the way, Binance is not the largest exchange in the world, it's the most hyped and marketed with followers and alexa rank.

According to Coingecko, Binance is in 10th place by Trading Volume.
https://www.coingecko.com/en/exchanges (https://www.coingecko.com/en/exchanges)

This is very unfortunate news. It seems like Bitcoin is staying strong, though, with the price almost reaching $6k. Binance is a very big exchange. 40 million dollars is a lot, but it may not that much for them. I hope the losses are those of the exchange and not people who held their coins there. If it's not the case, perhaps Binance will manage to reimburse the funds. I don't think Binance would risk robbing its own users, so I hope it will be okay.

People already accepted this kind of possibilities, we've seen a lot of hack exchanges reported in the past and that makes us stronger.
There is not stopping the bullish trend, looks like nothing happened, bitcoin just relax and bit and tomorrow we will see it rise again, no stopping for $6K now.


Bigger than Binance, and let's see the effect, just kidding.
Seriously, I don't want to see a hack again, it's bad for the market in general.

The good this is only 2% of Binance's Bitcoin got hacked and a cold wallet is really a lifesaver. Even a large exchange like Binance is targeted by these hackers and you're correct it is not wise to keep digital assets on exchanges no matter how big they are because anything can happen. I'm pretty sure that Binance will not let go of this tragedy and trace those criminals who hacked the exchange and I do hope that those ill-minded people will be put behind bars.

When I read the title I see Binance NOT Bittrex.

* (https://archive.fo/GEn32)

Again warn us not to put too much property on the exchange. Binance is currently the world's No. 1 exchange, they have full security technology but are still attacked and lose a huge amount of money. This motivates us to use DEX more, in the future DEX is probably the preferred choice.

"which exchange is next!!!"

This breach is massive, and shows why we need decentralized exchanges (just like we love decentralized coins) right NOW. I'd like to know what these advanced 'unforeseen' security vulnerabilities are that Binance is talking about (but of course any explanation will be vague). The fact that they were thinking about a rollback, which could question the independence and integrity of the entire Bitcoin ecosystem just shows they've got too much power.

Lets not forget that Ethereum forked (creating Ethereum, and leaving behind Ethereum Classic) because of a $50 million hack. It isn't good enough that a centralized exchange separate to Bitcoin could potentially impact the reputation of this leading decentralized cryptocurrency because of an almost $40 million hack. This amount is not insignificant, and the way Binance talks about it, its lucky they didn't lose more.

And now it'll be closed to deposits and withdrawals for a week (at least). Even my rubbish fiat bank doesn't stop me from accessing my funds for an entire week.

I'd expect this from Cryptopia, but not from Binance - the fastest startup to reach unicorn status, currently (or soon to be previously) coming in with a $2 billion valuation should have unrivalled security.

Anyone still thinking the centralized Binance chain is a good idea??

Yeah right - NAH

I've written about that before......

DEX suffer the same or more problems.

Has the p2p exchange been hacked on Ardor or Bitswift, a true p2p system   :-* One with the exchange built right into the wallets.

A lot of the loss of fund security breaches currently are security breaches due to coin network exploits (replay, 51% double spends, routing attacks,  time warp attack etc) but because of how trading works (reliant on coin network confirmations) anyone can become a target and victim. DEXs are also not immune from other types of attacks like DNS exploits and various other methods that manipulate connections to a network.

A lot of DEXs have not been systematically targeted yet because they simply are not profitable enough yet for the pro hackets.

With a peer to peer system the users of the DEX simply become the victims directly.

On a serious note, this will have a negative impact on Binance long reputation among it equals and not a good one for the exchange. Also, hope this will not have negative impact too on the current price of Bitcoin? or cryptocurrency in general?. Hope this ugly incident never happen again.

so in other words, no.

Look I gave you the Solution,3fa Proof of Person, use it..... OR don`t put your coins on a exchange and trade it to scummy fiat :P

You give your picture and ID and Address anyways, anywhere you go in public your face is there and your finger prints, what is the big deal to upload a 5 second video,  You don`t even need to give your address then.  

I would quite happily wager that at some point in time in the next 5 years someone will find a way to exploit them which will result in loss of funds.

Good I hope so, then we can fix it and do a RE ROLL RE ORG ROLL BACK

So an imposter cannot simply do the same ? Perhaps with a MIM attack or phishing ?

Identity theft is very popular.

It felt like a major screw up more than a hack.

40m $ is a huge amount at least they are covering it. I hope no exchange would be next. It all ends in here.

your going to kid nap someone, and make them do a captcha eye scan? And when they report it what are you going to do?

Who determines to do the roll back / re-org. Can I buy something of you and then simply accuse you of ripping me off and get my crypto back ? If not - why not. Isn't all theft - theft ?

Why not roll back for transactions from dodgy merchants, wrongly described goods or parcels lost in the mail ?

Who has controls the button that does the roll back ? What if they abuse their power or are corrupt ?

Poor implementation of a decentralized exchange is different to whether the idea of a decentralized is better or worse than a centralized exchange - I'd say its better.

Not quite the same, but something like DAI/MKR where everything is done through smart contracts to create a CDP, is better than having a central entity do the equivalent work imo.

The alternative is that we keep trusting exchanges like Binance, wait 6-12 months and post the same thing again about how much money was lost this time round.

Who controls the button? EVERYONE
Well with decentralized voting, the only corrupt people can be the majority.

I know there is more good people on this planet than bad, I have faith in my numbers, not all my numbers but the majority of them.

If it is connected to the internet it can be hacked.

If it plugs into a power source it can get hacked.

Some of the methods are fascinating. https://www.tomsguide.com/us/Laptop-Hack-Power-Outlet-Laser,news-4224.html

I want to see a new tweet by Binance Ceo about the new way of security. We all know the types of securing information: Something you have(Fingerprint). Something you know(Password). Something you are(Face scanner).  Let the Ceo think twice. Hacking news makes me feel bad.

I wonder if this is a good moment to mention DEXes, like e.g. Komodo DEX ...

Security is there to make you feel safe,not to actually secure anything.

Take insurances for example, when you have one, you just feel safer, but does that mean you are really safe?

Security sells only one thing and that's FEAR.

While I agree with you in part.

All hacks are because a security flaw wasn't considered or patched. Whether centralized or decentralized.

With a DEX - who will do the coding. Coding by consensus ? There are a limited number of people that understand or comprehend the code.  Even the best make mistakes.

Coin networks cannot even get the security right yet. A massive number of coins have been exploited this year and a lot of them haven't even announced it publicly.

It will be a long time before a DEX will provide real benefits over a centralized exchange.(Don't get me wrong - I am pro DEX - but real DEX don't exist yet.)

https://i.imgur.com/EHDSj3X.png

You should not always follow his advice....


What if the hacker steals so much funds that they have the majority vote ? (That actually happened with one coin exploit)

Also not everyone like revealing their identity. Dodgy KYC is used to harvest identification documents and photos that are then used in identity theft.

If the users are anonymous then they can create an infinite number of sockpuppets to vote with. Perhaps controlled by a bot.

https://i.imgur.com/EHDSj3X.png

You should not always follow his advice....



I wonder how 'Decentralized' that 'DEX' is going to be, and when it will experience its first hack - needless to say, there are other DEXes already operational- buuuuut herd instinct and all that...

How do they cash it out through the streamers though? You are implying that the streamers are aware that they are going to receive these donations and then cash it out for the hackers, making them partners on that crime, are you not?

Coinfirm analysis the Binance hacker has recently moved over 1214 #BTC (~$7.16M) to new addresses, but almost 5786 BTC (~$34.14M) still sit on the #Binance hackers original addresses. Take a look at an analysis:
https://twitter.com/Coinfirm_io/status/1126082101080743938

Haha ... I also don't want see any other market to be hacked too. it is true, this news seems, does not really affect overall market movements. bullish trend continues as if nothing happened.
For now, let's monitor the news from binance. hopefully the problem will be finished soon.

it's not that huge. it's nothing compared to some of the hacks we've seen in the past 2 years like coincheck etc. it was apparently ~2% of their BTC reserves (hot wallet only) which is what one would expect in the best case scenario.

apparently with their trading fees they can recover from this in <50 days. it's not that bad......

Nothing will ever compare to the amount of coins taken in mt.gox. btc wise. Which is all that matters. I am sure in the future more Fiat will be taken but less btc in exchanges. Unless some big boy miners team up over in China, that might be the biggest threat to btc, even worse than mt.gox.

but in this case you will receive not 7000 but only 7 btc. why they did not use XMR, DASH, ZEC, etc?
p.s. video funny ;D ;D ;D

I would hope so. A few years ago -- and even up until recently -- there were still exchanges keeping virtually all customer cryptocurrency in hot wallets. No hot wallet or automated withdrawal system is impenetrable.

Through responsible cold wallet management and possibly hot wallet insurance like Coinbase has, these situations should become more like this Binance hack and less like the Bitfinex hack a few years ago, where 120,000 BTC were stolen.

Fortunately for customers, Binance is a much more viable exchange than other recently hacked exchanges like Cryptopia. It seems like they'll recover from this.

This is heartbreaking.
I have a feeling that whoever is doing this is capable of hacking pretty much any cryptocurrency exchange.  They only hit any exchange when they feel like.
It's unfortunate enough money isn't put into the research o decentralized great exchanges

Some countries have legislation that considers crypto "personal property". Receiving stolen crypto is receiving stolen goods. Good title cannot pass.

I'm sure a judge has heard "he gave me the car for free" before when dealing with someone in possession of a stolen car and it may well be true. But I doubt it stopped then from receiving a penalty.

During the NEM/XEM coincheck hack the hacker deliberately "donated" crypto to various parties and created may small outputs to try to obfuscate forensic analysis but cluster analysis still tends to follow the trail.

Laundering and cashing out still is a major hurdle for a hacker and carries much risk. A lot of the XEM/NEM was sold at a discount on the darknet. I am sure that over the next few years there will be people that regret buying it and participating in the money laundering.

Thieves have all the time to plan and execute a crime. The thieves know all the details about what they have done. But once the crime is committed - enforcement and investigators have all the time to figure it out.

I understand all this but I am still wondering how hackers benefit in making donations to streamers or to anything else for that matter. Unless the person receiving that donation is also inside the scam.

The Drug Courier for example, they know that they are carring drugs to deliver to the destination and get paid or are coerced to do it. How do streamers fit in this equation?

That is a major concern. For the sake of transparency Binance should detail exactly how this happened, so we can see if this is an issue that could exist for every exchange, or if this is a Binance specific security issue.

We'll probably get a 'nothing to see here, we fixed it' response. But we'll find out in a week.

Binance API keys have problem and this is the first time they accepted it. There API keys were hacked earlier too.

https://hackernoon.com/how-your-trading-api-keys-can-be-used-to-drain-your-funds-f9148d1e6d33

https://coingape.com/binance-hacked-or-syscoin-blockchain-compromised/

By making thousands of payments to random people the hacker can obfuscate transactions made to those involved in the hack.

It would be hard to judge whether a payment was made to a random person or someone involved in the hack.

Some hackers have done this in the past. Clustering of payments usually still make it identifiable.

The theory is that if you give 99% of the stolen funds to strangers it becomes hard for the police to identify the hacker who manages to launder 1% (or more).

Since it is then impossible to determine whether it was a random payment or a payment to the person linked to the crime.

In practice it still can result in being charged with "receiving stolen goods" if someone uses or moves the funds.

I'd still prefer coding (or smart contracts) that are open source for anyone to see, rather than a centralized exchange where we don't know wtf is going on.

Does anyone know what the security is like at Binance? Not really. It is intentionally 'secret' for 'security' reasons (didn't help much).

With something like a real DEX, or smart contract set ups like MKR/DAI, anyone can review the coding/contract, and see if they are comfortable with the security from there.

Not saying that DEX is currently perfect, but hopefully over the years it will be much better than what we have now. Like you're saying I hope that a real complete DEX will exist soon.

I get it now. Crazy to think that hackers go through all this trouble to get 1% to 10% of the loot. Wouldn't it make more sense to sell it on the darkweb? I know that the darkweb markets were moving the goods through monero transactions but never understood how could they buy monero with btc without being traced from those btc transactions since btc is not completely untraceable.

Thanks for the share up!

They do messed up on this one.Hacking incident in the middle of the Hype of their Binance chain is heavily affected.This is just like a broken glass which it would
really be hard to bring it back into its original form when they are trying to fixed but somehow they are trying out their best.

What exchange next? No one would able to know but as long these hackers can see on how they can milk out some money then
we would be just be surprised.

As he said that's an expensive experience and lesson and I think this wasn't the first time that happened some bugs or hacks on their exchange. The syscoin thing also happened to them.

Yeah, this thanks to this link.

We don't know when they will be attacking again and yeah it's likely they can attack any exchange that they want. We seem to believe that Binance has the highest security but after the incident our expectation has changed.

They could be eyeing this exchange for quite some time now. And because Binance is huge, it's worth their time to find weaknesses in the system and that's why they do. So they could literally hit any exchange if those hackers took the time and drain other exchanges money as well.

So sad that these exchanges are not taking the necessary steps to prevent such malicious activities. As far as I know, the Binance hack was not a sudden attack that happened in a matter of a few seconds. The hackers took at least a few hours to move the coins from the Binance hotwallets. And it surprises me that none of the staff noticed the robbery while it was going on.

It's because there are not warning or red flag about this withdrawals. The hackers obtain the 2FA's and anything related to withdrawals from accounts that why Binance wasn't able to catch want's going on.

Maybe they think it's just a normal withdrawal process that's happening. Until such time they realises or someone reported that there is a hack, but it's too late as the hackers was able to get away already.

They are good from what they've doing, there's no escape from any target as this hacker/s really have the knowledge and capabilities to breached in
with any securities they will find any possible way just to break and sucked wallets and move away with the money from the exchange.

Time now for every exchange to find good backend support group to take care of securities and protect their business.

This is a fucked up revelation by CZ who was promoting and encouraging everyone to keep their coins in the exchange as it is super safe, he should be prosecuted for the mishandling of things and not revealing their security problems to the public, if they really knew that earlier and never reported it to its users, it is a crime to begin with, i am not going back to that exchange in the near future.

I have some coins in binance.  They do still show up there.  So in this hack, does anyone know what percentage of users were affected?  Were they mostly bitcoin holders?  Were there altcoin holders that got coins hacked?  Or was this only binance wallet?


Did they reimburse users who were affected by this?  Or no users were affected by this?



Also if someone has 2FA enabled, they are not safe from this?

and the  hackers starting to sell users database infos in the darknet its have like 7m user database

This is risky, personally I pass the KYC so my information is now not a secret if it's happening.
Even big exchanges can be victim of this, I wish we have some sort of exchange that does not require any KYC,but we cannot do it since they are regulated by the government.

I think Exchanges should be penalize if they got hack as not only our coins are compromised, but our information as well.

They will not tell you whether the personal information you gave are safe with them, we have seen many hacks in the past and what happens all of our personal data will appear in some dark site to be sold and only then people will understand the gravity of the incident, every exchange will follow the AML rules so that they do not get in trouble for their business but at what cost in the big question. Yes i support the idea of penalizing the exchange for their reckless behavior for not taking care of their security.

Another news from binance as they went offline all of a sudden citing hard disk error and here is the thread regarding that PREVIOUSLY NOT ALLOWING TRADING (https://bitcointalk.org/index.php?topic=5152061.0) it clearly shows that the misfortunes of binance still continues, eager to see what CZ has to say about this issue and whether his confidence still shows up in his tweets  ;D.

That's correct, but it's not the amount only, it's the vulnerability of the site against hacking.
They are a billion dollars exchange, and their trading volume (daily) is over $1 billion, so they can easily recover the hack amount, but if this happens again, I doubt if they can regain the confidence of the people again, this will lead to a their downfall as the next hack might result to loss of bigger funds.

It's important to note that Binance wasn't actually hacked. They are still using the same hot wallet today, which they've said is limited to about 2% of customer funds. Some users -- including some with very high account value -- had their accounts compromised. Binance didn't have proper internal checks in place and authorized very large withdrawal requests from these accounts through its automated system.

An attack like this can't drain anything beyond what's in the hot wallet. We can also take some comfort in the fact that Binance's system wasn't actually compromised. Fixing this problem is a matter of implementing more strict controls on the withdrawal system, not identifying unknown security holes and rebuilding the system.

You are correct and Binance knows the importance of good customer service which they have and has made them the best but on the security side it could be nice to know how the hackers exploited their system as I thought this would never happen with them.

lol . so your still happy despite the hacking incident that happens ?  what about binance ? they arent smiling because 40m usd is still not a joke amount  . you thought that binance is a perfect exchange and wont ever be hacked ? thats impossible mate  . your thoughts are wrong because in the online world everything is possible and everything is hackable  . binance should have a sticker security for now but there is no guarantee that it could make them safe  .

How many peanuts they can handle to go bankrupt, there are instances where the owners die as the sole owner of the private key of the companies entire cold wallet funds and no one is able to recover anything, so choose your words carefully :P. I am not sure how many audits they did after the hack to check their entire system of any back doors, recently there was a news that their customers private documents are available online and how do you think they will compromise this serious privacy issue which could get anyone in trouble if criminals gets hold of their documents.

You can prevent these incidents by taking good security measures by getting trigger warning when something fishy is going on, they got the trigger after the hacker's already withdrew the amount, so basically it their fault for not configuring their system to get prompt response. You will not hear many stock exchanges hack, it is because if they see any unusual activity they will shut down the entire system and will restart when they think it is safe and then verify and carry on with the process, we need those kind of strict security measure from crypto based exchanges too.

There's always a glitch to exploited , basically nothing is safe on the internet.

No matter how high the security measures been implemented , i think there's always a chance for someone to get in the system and take advantage on its negligence ... things that called bugs or something like that. Easy said than done , yeah.

FYI binance itself have a trigger warning on their security system , ridiculous if such a huge exchange didn't have it. They should lose more than $40 million if there's no proper security system. Time after time hackers will always found ways to avoid any security system that claimed as the most secure one , that's yin-yang the concept of dualism.

I never claimed that they did not have any trigger system in place, you can check my post history and you will have my point in this matter. If a trigger system is initiated after loosing $40 million what kind of security measure is that. The trigger system is meant to stop any unusual activities and not after the process is done, if they are sending $40 million dollars per transaction in a block without any verification then no one can help them and that is the point i was trying to make.
Anything online can be hacked if there is a bug, but what happens if the entire wallets are offline and the kYC are not linked to the main application, do you think that the hackers will have any use hacking an exchange again rather than disrupting their service.
My point is there are ways to protect these sort of attacks the only thing is that they need to implement those to avoid these looses.