Bitcoin Forum

As I remember correctly (post if I am wrong) Binance CEO was suggesting people to hold their coins on most trustworthy exchange and in this situation he was paying attention to binance. Overally suggested people to trust binance and hold their coins here.
But recently there was a hack and 7000btc were stolen. So what was the point?
1. Binance has good security system and this hack is false, they just wanted to give a bad reputation to cryptocurrencies (this work comes from governments and financial institutes) because now there will be a rain of articles about how bad crypto world is, how unsecure it is and etc.
2. They are stupid and really had security issues

I'd go with number 2 sans the stupid part. Overconfident, yes, but stupid? I don't think so. Some hackers are just really good with what they're doing and gets the better of most top-notch security systems at times. Also, no system is bulletproof and there will be some sort of attack vector and weak spot no matter how secure a system is. It's quite unfortunate for Binance to lose that amount of money, and it's good on them to cover up the losses for their users so I don't think they wish ill-fate on crypto in the first place.

I think it's number two. Binance must have been sure about their security, but something went wrong and someone was better at this. I don't think such an exchange would risk robbing their users. They have great income when they are playing by the rules, and the damage to their reputation is not worth it.
It could be the third option, though:
3. Some random smart guy that works for Binance in security issues figured his salary will never give him the money he/she can now untraceably steal.

It is a very old saying that anything is possible so it means that nothing is impossible so whatever security level you have it can be broken by hackers. The reason can be different in almost all cases like in some hack it happens due to insider cheats, some exchanges hack their own site as they are running in loss and to shut down the exchange they do this. Some hacks are really done by hackers who are trying for long time and in the end they get success and hack it.

So their is no security which can be breached, it is only the users who have to be safe and alert by using lot of security steps.

I guess it's none of two. I believe that Binance would never do anything to break the reputation of cryptocurrency because it would also affect them negatively. They have done their part when it comes to security measures but hackers are too smart to succeed with their plans to steal.
Binance didn't want to get hacked because it would surely ruin their reputation as an exchange. They might fail at some point but they didn't intend this case to happen.

well, we can surely say that they are not stupid, and we can also see that they are over confident.
The point is that no security system is 100% safe, or else people wouldn't be able to hack FBI, NSA, etc... it is only a matter of the right people with the right equipment and they can do it...
And another point is that they are returning the funds to the affected users, so in the end this could also work as a form of advertisement... nothing is 100% safe but on Binance they cover your back... ;)

Do you seriously believe that "governments" (like if they all conspire together?) would spend 40 million dollars to give some temporary and very tangential bad rep to Bitcoin? And that Binance would sabotage their reputation and future profits because governments and financial institutions told them so? This forum is always quite tinfoily, but this is just ridiculous. And look at the aftermath, Bitcoin kept growing in the recent days as if nothing happened, and no one really cares, just like no one cares about Tether and Bitfinex.

Why? Because usually this is time when a rain of bad words come around bitcoin, for example see this new article and statement from European Central Bank president: https://cointelegraph.com/news/ecb-president-mario-draghi-cryptos-are-not-currencies-they-are-very-risky-assets/amp
Man, I don't claim but still there is a chance of it, game has to be played like it is real and has nothing common with it.
Bicoin does different things, once it fell by 200$ in some hour (was 10% loss at the moment) because of withdrawal stop by chinese exchanger and recovered in one day. Binance's situation didn't cause panic, yeah, agree but also it's a well known fact they had reserves too (10% of fees).

For what I know, they have a good security. Since the day of their operating day last 2017, this is just the first time it was hacked. So probably some people tried to hack this site but they didn't succeed in doing so. Probably the point of these hacks are the hackers themselves. They wanted to have money without working real hard for it or they're just testing the waters. They are testing the security of the exchange.

Hackers have one major goal in mind which is to validate their pedigreesa and to further prove their keyboard prowess is still very much in tact. Although I feel the hack was false so as to crash the market, but the market didn't respond to it in a FUD manner.

The market has not reacted negatively with this incidents so basically, i’ll go for number 2. All we know that binance is a secured exchanges so it becomes the number 1 but this incidents proves that we are just deceived by numbers and we are too confident about Binance. They failed to work on this, they miss something and this will teach them a lesson, something is working under the table of every exchanges.

Whatever it was, this news greatly affected those people who trusted their funds to the exchange.Also, in General, we can conclude that it is not necessary to store your funds on the exchanges,no matter how cool it was.In all this situation, I am interested in how hackers were able to bypass 2fa.Before the hacking I was just 100% sure that using this protection scams in any way can't find me.(as it turns out I was wrong).

They aren't stupid, but there are security fails. There is a constant battle between security and hacks (defense vs attack), all the time there is a group trying to make the defenses stronger, while there is another group making the attack stronger.
The defense is usually stronger for most part of time, but once the attack makes its way through the enemy field, the consequences are devastating. It's an incessant battle, which only the most dedicated and aware programmers win.

Every system is hack"ble". And system and online organization that holds a lot of money has a great incentive for anyone with great knowledge try to hack.

Solve puzzles is fun. Especially for people that are smart. And hack a system is like solve some puzzles. Nobody is safe enough. We will always see someone hacking an exchange or hack another person's account

I think that Binance has done well with security and compliance. They have hired cyber security firms for both KYC and AML compliance. Even one of the companies they work with Ciphertrace mentioned that the reason for the hack had to do with 2FA authentication. I think we need to think a little more on how we can make that aspect better and less resistant to hacks

I don't think governments or financial institutions would go this far and spread such rumors around the internet, at least not at this point because cryptocurrencies are not such a big threat for them right now. Every exchange claims to have the strongest security because that's what they think so but this is not the first exchange that claims to be the most secure and then gets hacked at a certain point. Just like another member said here, every system is hackable and that has been proved many times before.

right on point! so those cases of hacking FBI, NSA, and other powerful organisations, we are telling them that they are stupid! nope!
there are really smart people who can break such 'impenetrable' walls. remember, their gadgets/equipment/softwares are getting advanced every day. we are not stuck in the traditional technology, we are moving forward on this aspect.
and BNB is not alone on this battle. but one thing for sure, BNB will not let their clients down. they will resolve this incident in a swift manner. unlike topia, you dont even know if you have the chance to get your funds back. they have totally different approach on addressing this kind of scenario. i still go for BNB no doubt

Lol, stupid you say? Please i think you should take it easy when it comes to talking about hacks. It has occurred to so many exchanges and the bigger and trusted ones I mean. Binance was the best so far and hence was a target by hackers so I won't blame them. This is a lesson to them, I think they'll improve now.

Binance would never gain a good reputation and earn the trust of users for years if they didn't comply with the security requirements as an exchange. They should never be the one to blame. Hackers are just smarter and they're well equipped technically. I think it's another lesson for both exchanges and users.

Maybe whales on binance is just wanting to make a fud and force people to sell all bitcoins because people are worried on security,we know binance has high security measures maybe they are just faking it for users to dump bitcoin which they were succesful since bitcoins price drop a bit when the news came out

The big point of the recent Binance hack is that nothing is really safe especially if your platform is online. And with Binance holding millions and millions of coins and tokens, the incentive for the hackers to focus and give all what they got is quite enormous...and they eventually got the prize worth around $40,000,000.

Hackers with their excellent talents and skills can be two steps ahead of the security game...this is the reason why even the best security technology can be no match to them. They are the best in finding even minute weakness or bugs of the system and they have the patience to wait for the right time to make the bite.

I am expecting that this will not be the last and there will be more dramatic and much bigger quests soon. This is also the reason why somebody should come up with a more hack-proof security system otherwise we are definitely fried in here.

no business will ever say "don't trust us"! they will obviously always tell you to fully trust them and will always say their security is impenetrable, blah blah. it is up to the users to take a look at the reality of the past 10 years and dozens of hack cases of similar exchanges that were promising them security.

it is the second one mostly because of how they reacted after the hack occurred. i am talking about the "roll back" suggestion which only proved their lack of understanding of how bitcoin works, its unbreakable features and what it represents.
of course whenever there is an exchange hack involved there is a third option: there was no hack at all. it was fake to steal $40 million of their users' funds themselves.

Why not a combination of both those hackers or maybe whales wanted a side of bitcoin to be bad. They are whales, they only wanted to uplift themselves. They don't care about anybody else. But if it just a hacker, probably that hacker just wants money.

Are you really asking this? Money!!!! Hacker get money from stupid exchanges that make stupid mistakes.
Binance is not immune to hacks just because noobs glorify it for allowing every damn shitcoin to be traded there.
Remember they fled two countries to date because they couldn't comply with regulations while other exchanges had no problem.

People look at those fake numbers, do two trades and nothing goes wrong and bam, Binance is the best!!!!
They can be breached just as any exchange has been breached before, and their constant avoidance of complying with laws tells me that it's a miracle this was the first hack, more will hit is sooner or later.

As for an exit scam, it makes no sense, they would be making more in fees and fat fingers incidents like this one: https://www.reddit.com/r/CryptoCurrency/comments/bmm75m/my_friend_lost_400000_paying_over_17000_times_the/
than trying to pull a fake hack.

Whenever there happens a hack people get a negative opinion on bitcoin. From the earlier Mtgox hack same is happening around, most of the time these kind of hacks happen when the price of bitcoin gets ignited to a new bull market. This time the market of bitcoin hasn't got disturbed even after the hack of Binance. If it is some other exchange surely the market could've suffered a crash.

They purposely carryout these hacks just to make sure they brought Bitcoin to the people with bad reputation, nothing more in my own opinion. But nevertheless, they are going to fail becasue Bitcoin as a technology will solve all these issues surrounding it. More security should adopted by these exchanges either internal security and external security.

if this was the first time an exchange gets hacked then you might have been correct about your first point regarding "Give bitcoin a bad reputation". but this is not the first time, it is about 50th time an exchange like this gets hacked. we have at least one big exchange hack of this magnitude every 6 months and over a year we have at least 10 hack cases of smaller magnitude.

so all they do is that they give the exchanges and the centralization a bad reputation at this point and they lead to more decentralization. so a good thing can come out of it too. if you look around the internet you can see a lot of people are talking (once again) about decentralized exchanges which is good.

I don't think it's the two reasons you gave me in the survey. The 7000 BTC is a very serious money even today. It might just be made for steal money.

I will say hackers are smarter than Binance as they studied their security network find their loopholes and then executes their plans. Binance hack is the wake-up alarm for other exchanges to make their security walls stronger.

You might be correct but we'l never know what if its an inside job ?  Hackers are might be one of the devs of binance exchange   but no need to doubt that all hackers are smart people because they dedicate thier time for studying and exploring  on how to bypass ones security   .



No i think its not because binance isnt the first big exchange that have been hacked but there are already bigger exchanges on the past that also experience what binance experienced . those past hacking incidents are already the wake up call for other exchanges to tighten up thier security but sadly there is still possibilities that their system will be bypass in the future .

You could have good security and still get hacked. I'm not saying Binance did, but theirs is probably a lot better than most small exchanges. Point number one doesn't make any sense because the hack has nothing to do with crypto's inherent security. It's all about the exchanges.

Point number two could be true, because only uninformed people or people who have financial stakes would suggest you to safekeep your coins in exchanges. They obviously had security issues, but they at least had SAFU (https://www.binance.vision/glossary/secure-asset-fund-for-users) in place to cover the losses, so no users will be losing money. I guess you could still say it's safe, to a certain (or really low) degree.

I still wouldn't recommend anyone to keep non-trading coins in exchanges, but things could have been much worse.

i disagree. mainly because i have never heard someone say some exchange was hacked so bitcoin is bad! anybody who has a negative opinion about bitcoin is usually having that because of the volatile price, lost of FUD and lack of understanding of how bitcoin works not because some careless third party services lacked security.

I will also agreed that an insider must be involved in the hack the crypto stolen is huge and balance might likely wanted to bring bitcoin to bad reputation as you reiterated I just can't imagine how a reputable and widely known exchange would easily be prone to hackers.
This incident will project cryptos in a bad light and effort must be put in place to prevent future occurrence and balance should plug any bug or loopholes on their exchange.

Again, I will parrot what others are saying: Nothing online and accessible in the Internet is safe from hacking - moreso nowadays when hacking is so goddamm lucrative for the best hackers.

Keep your valuables offline and in a safe is the way to do it.

Bitcoin has not much to fear reputation wise if a exchange cant manage security or does a screw up on the backend. It is frightening to see this event is happening and getting unfolded with the world watching. Once again proof no exchange is 100% safe and sooner or late will be a victim if they grow to large.

That is something that they should come out pretty clean with, and explain exactly how that was possible and if they are really talking about the 2FA itself, the backupcodes, Binance App related (read some issue with 2FA there), or whatnot.

What they seem to be doing now is "making significant changes" to the API and 2FA and other functionality (see https://www.binance.com/en/blog/333497959022997504/Binance-Security-Incident-Update). Amongst the changes, they will now alow the use of hardware YubiKey for 2FA, and even give 1000 Yubkeys to promote it’s usage. Nevertheless, this is petty marketing makeup, and we are entitled to know exactly how the 2FA was bypassed and to what extent.

I think they are just really stupid but Im not taking out the chance that it is to give a bad image on bitcoin but if Im going to vote Ill put my guess on number 2, 90/10 (10 on the 1st option and 90 on the 2nd).

Just as we have good men likewise we have bad men and all these exist in every sector. Just as cyber security expert don't rest over improvement of security likewise hackers don't rest too, they look for every possible lope-holes to prey on any system. This time they hit at Binance. If hackers can, they will hack the US nuclear code, the situation is as serious as life itself.

Bitcoin SV get delisted and soon after that the hacks follow, I think the hackers must have suffered too much damages from the delisting and want a sweet and quick revenge, I'm not pointing who is the hacker, it is all up to you now.

it's not a problem if they have put most of the funds on cold storage like some well-known exchanges. Even some gambling sites do that. I mean common you have 7000 Btc on a single exchange it's not a gambling site so why do you need so much money in 1 place when all of the money is not being used. they can leave like 100 Btc for all the active transactions happening that can minimize the loss pretty much.

I don't like conspiracy theories too much, but it seems like the point is to dump BNB, which went parabolic recently. I'm not stating this, just a guess.

This affects those people who trusted a little. Because your funds are #SAFU. YOUR FUNDS ARE SAFE. And if you'll going to compare 7000 BTC to the whole volume of Binance that's nothing. That's just 2% of their btc. Anyway your funds are safe so it does not affect me I can still saw my funds.

Obviously, people hack to gain money and this time it is not an exception. Loosing money is indeed a huge setback but on a positive note, security weakness can now be reduced or even be gone and further security exploits would be thwarted.

I don't think Binance exchange set it up. Why would they do that? Just now really hackers become smarter and any exchange becomes vulnerable. But Binance did a great job with this and it shows her professionalism and increases confidence.

I'll discard both of your points. There is nothing 100% secure, and binance is no exception. What they did right was having most of funds in cold storage.

There are plenty of reasons behind this attack and I am wondering also if what is the main reason for the attacker. If it is from the government that want's to ruin the reputation of crypto currency then they have successfully done the part of it.

The article is spreading very fast, as I also read in yahoo.com article in which they tackle about binance being hack and lost 7000 btc right after the attack happened. But if the hacker will give a unanimous tip why they have done it aside from money then it will surely clearly answer our doubts and questions.

What incentives do they give if they fake this hacked? They are in the business of making money out of crypto, so I don't understand why they wanted to give it a bad reputation.


Everyone here is at risk, even Binance, hackers are smart and they just outsmarted one of the best trading platform with good security measure. What do you expect?

Arguably there's multiple motives that aren't clear or justified at all... Hacking could be for personal gains, by exploiting API vulnerabilities through stolen private keys. Which is not what to be expected as the funds are definitely seized control by other exchange, maybe most of them. Some say its a gimmick for the exchange to get more BTCs as their refunds are all in BNB (some source i seen). Hacks are pretty common but on big exchanges though

I would go for the first variant because it's a big and trustworthy exchange existing in the market for a pretty long time, it's just accidental false which can be easily fixed

That's what they did. 7000+ ₿ is what they see as active transactions, so 2%. This implies they have at least 343000 ₿ more, in cold wallets.

Yeah, those 40 million were the change... An exchange is pretty much like a bank, using full reserve banking (https://en.wikipedia.org/wiki/Full_reserve_banking) practices. They charge you for deposits and withdrawals, like a full reserve bank should do, its what their main income is from. And a part of that is covering for the stolen funds, same thing a full reserve bank would do should thieves steal the bank.

Giving bitcoin a bad reputation is just useless because it is not different from fiat money getting involved in scams or illegal activities. It's just all about the people who can't afford better security like storing buying ledger for better security. What's the point of storing your funds in the exchange sites anyway if you know that there is a possibility that it can get stolen there?
'

I am going for option 3 which is not there and that is basically that these hacks are done by someone from within these exchanges. It will not be the first instance where a inside job is the cause of some exploit in the system. The person on the inside becomes aware of some exploit and they get someone to "hack" the exchange and then share the spoils.  ::)

You can even add a option 4, "The hack was done by some government hackers, to discredit Bitcoin". We have already seen how North Korean hackers have been active in the Bitcoin scene.  >:(

The main aim of hackers is to steal resources and most at times money. That is the main reason why they hacked Binance exchange, but I think they also want to scare people from investing in Bitcoin since you will think your money is not safe.

after hacking at Binance, I got a lot of lesson.  yes.  each exchange has a positive value and a negative value, Binance is an exchange that has many positive values.  but.  Binance cannot guarantee that our assets are stored properly and safely. 
and also we know that the crypto trading volume at Binance is very high.  but saving assets in a wallet exchange is not a good choice.  included in Binance's wallet.

Actually a ledger wallet is not that expensive this days because you can find one of those wallets at the price of 50$. I understand that a few years ago the price of a ledger wallet was 200-300$ and some people could have an excuse for not buying one but right now there is no way someone can say they can't afford to buy one especially when we are talking about the security of their funds.

Sometimes people just underestimate the hacker and not updating the security, I believe Binance doesn't got any bad intention that can ruin its reputation, the owner need to pay more attention to this hacking one more mistake people will leave and find other exchanges

No exchange is unhackable. There is always a possibility (however slim) that a hotwallet will be drained. Exchanges ought to strive to minimize the value exposed to hotwallets, so they can cover the losses from their own reserves -- Binance did that in this case. In the alternative, exchanges can obtain insurance policies for their hot wallets like Coinbase has done.

We don't have all the details about what happened yet, but from the statements that have been made, Binance's servers weren't actually compromised. It was individual account holders who got phished or had SIM cards ported, and the attackers successfully cashed out from many accounts at once. I assume many other exchanges wouldn't cover the losses in this scenario.

Inside job.

Obviously the first point is way off. The binance hack happened right before bitcoin zoomed past 7k so technicaly, it didn't make people doubt and lose faith, if that's what they're aiming for. And binance has an insurance covering the lost btcs so i don't think it was done intentionally. Hell good hackers broke through their security it seems and it's not really impossible that there are hackers that good.

If there's a good thing from this mess , binance should improving the security less some hacker from State sponsored group will try again in near future

The security team's maybe relaxed for a while since the exchange is really performing well, forgetting about hackers intentions to go inside their system and hacked their funds, I'm also positive that binance didn't intentionally did this as they already have a good business to facilitate which can lose people's interest and trust.

the second point becomes one of the things that might really need to be considered, the security problem for an exchange of binance must be noticed and binance should not remain silent for this problem. binance must try to be one of the exchanges with the highest security system and must improve it

I don't know whether binance conducts audits related to network security on its exchange market. because if you do not carry out periodic security audits various security holes can be penetrated by hackers. this seems to awaken everyone that the security gap can be broken if the network security officer doesn't really manage his security properly.We don't want to hear the news about security system breach in the cryptocurrency exchange market. this greatly damaged the reputation of this community.

A lot of these hacks you hear about are fake.  Its just an excuse for excchage operators use to run away with customer funds.  Sure real hacks happen sometimes but those are actually rare at an exchange level without an inside employee that is involved.

If someone or a team of hackers could withdraw a huge amount of bitcoin and they could not flag those big withdrawals without being identified how can anyone call them secure, CZ was a fool who gave everyone false promises and like to be in the media often with his challenges and the way in which he handled the hack as if it is nothing major and then trying for a roll back as if it was some shitty altcoin   ::).
The only solution is, never trust any exchanges or third party wallets, store your coins with you where you hold the private key.

As i know hackers will always try to hack almost everything if there can also get some good amount of money from hack they will do it, and with crypto is hard to track them if they not send their coins to an exchange who report who deposit it, and even on exchanges where is not ask KYC.

Binance is a standard exchange with good security, the issue of hackers is not new in the cryptosystem there are real good hackers that can broke into any security and do away with funds or valuable assets in that case I will say not only Binance but all exchanges should work on their security on daily basics if possible since technology grows every moment the best today might be outdated tomorrow. I will say the hack is never intentional beside since it happen Bitcoin has be growing positively.

If a hacker is able to access a private key then the exchange wouldn't be able to stop the hacker from withdrawing the coin, there's also a possibility that it's a inside job, People will only store their coins in their own wallet when the hack affected them like me even though it's not a huge amount it taught me a lesson to not store coins at a exchange.

Your third option is more like what I agree with. I have always felt the hack was an insider job ever since it happened. The OP's first option was way out of the equation. Robbing a bank won't stop people from keeping their cash in the banks.

No system is Safe! - Read it on somebody's personel text.

As long as a system is connected to the internet and has vulnerabilities, it is possible to hack the system and steal the data in it.
I believe no system is unhackable, you just have to find the right vulnerability to it. Hackers found it out and hacked binance.
Why they did it ? Probably for the money. Nobody can be blamed here. It was just a misfortune that happened.

I think the point from the hack is we need to always secure our account with activating anything to protect the account from the hackers, and we need to follow what binance said. The hackers are on everywhere, and we don't know who will be the next target, and we need to be careful to use the account and don't trust any links that sent into our email or our phone.

It is bad to think of how these known exchanges get tortured from one of their team members. If these can be a false accusation will surely be a subject for a libel case. The investigation is on the process and they'll never say what really the cause of their hack. Although they end up into hacking and the good thing is that it won't affect the market prices and soon Binance will recover their big losses.

Hackers according to some reports used more advanced methods or technologies in hacking ang they are always looking for effective ways to penetrate even the most secured sites. The binance hackers obtained user API keys, 2FA codes and other informations to execute their plans so it means they had successfully  found another way to hack the exchange. The hacking of a considered most secured exchange should be a wake up call to further improve the security of every exchange.

Binance is such a big and reputed exchange.People trust binance and that's why they store thier valuable crypto thier.So, binance have a huge responsibility to protect user's money anyhow.Hackers are always in search of weakness in your system, so you should hire experienced and correct people to your security system.So, It's absolutely fault of binance Because Their security is weak which we have seen.                       

there is no such as %100 secure platforms, not for exchanges, not for anything.there is always a way to hack.another thing is i think binance did a great job except talking about rollback.

This is so true. There are a lot of agencies in our country that are scamming people and their escape or route way out is Bitcoin. Last year, when the Bitcoin dumps after the ATH, a lot of scammers run with their client's money and if they asked about what happened, well they will be saying that the price of Bitcoin fell and the blame will be all pointed to Bitcoin.