Bitcoin Forum

Binance hack, Self inflicted?

Its been a week since Binance was hacked, lucky it does not affect the Bitcoin Price that much.  As I was watching several reaction on the youtube, I found it interesting that some of the streamer does not buy that Binance were hacked but rather thinks that it is some part of Agenda.  Among these streamers are:

Binance hack doesn't make sense! THE TRUTH about accredited investors in Bitcoin! (https://www.youtube.com/watch?v=9pOqjqkG6lo) by Mr_Kristof (https://www.youtube.com/channel/UCFv_fMg2ENc2_6qWmy5I4nQ)



Was the Binance Hack Faked?!? (Some People Think So... Find Out Why) (https://www.youtube.com/watch?v=2jCgf6tcUBI) Jacob Canfield (https://www.youtube.com/channel/UCiMgF08KQ4z-Gnu8o2BLOxA)




IInteresting topic on twitter that is started by Bitfinexed regarding the Binance hack:
Here are the chances that the 'hack' on Binance, is really a hack. 0.000000000%] (https://twitter.com/Bitfinexed/status/1125908996655919104?s=20)


Binance Hack Scandal. Truth Revealed! Funds #SAFU? Theory You Haven’t Heard.. (https://www.youtube.com/watch?v=g1NBBdTULGs) by Chico Crypto (https://www.youtube.com/channel/UCHop-jpf-huVT1IYw79ymPw)


https://i.imgur.com/V4OlBgH.png

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Funny how CZ made this statement:

https://i.imgur.com/agtMd82.png (https://twitter.com/cz_binance/status/1085115366508883968?lang=en)

later announcing that their exchange was hacked.

https://i.imgur.com/WTnzoMk.png (https://twitter.com/cz_binance/status/1125907214256836608)

Though there are theories that these hack is either self made or non-existent at all.   Other said that there is actually no hack but that was the incompetence of Binance that almost lost hundred of thousands in the transfer process from Binance hot wallet to segwit address. Others think that it is just a mere stunt to showcase their SAFU or present their newly found DEX.  Whatever the reason is, whether it is faked or not, it is a good thing that funds of their client are safe.  

Why always 7000 BTC ? lol
I dont know what happen, why someone can transfer 7000 BTC in single transaction? binance limit 100 BTC withdrawal if you a verified users.

That is indeed suspicious here.  Then thing is during the 2018 hack, they only suspend the the exchange in just a day.  While it took them a week this time.  Some theory thinks that they did that to keep the value of BNB from dropping. Others think that it is to avoid the colapse of tether since they are holding around 74% where they have the luxury of arbitraging it to other exchange while they disable theirs.

That was a good theory, it also crosses my mind too, because of their coming DEX, and they want to show to the community that whatever happens, coins are all safe and they guaranty that, anyway, whatever happens, they are still the number one exchange, but it does prove if the hacking is true that no exchange is safe.

Is weird also because this happen, and i think how they "hacker or hackers" could put all bitcoin at one place if they steal users data and login on single account and after to withdraw 7000 bitcoin?

It really seems fishy.

Also, he says he will be transparent but not telling how did this happen so far.

Hackers don't need that kind of permission, it's limitless to send Bitcoin. Why bother to follow Binance rules while they can just send them in a single transaction? Also, the hacker spreads the funds into seven different addresses, not a single address.

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What if actually Binance team did this by theirselves to make people move to their DEX? So, their new product will have its volume as well.

most of these youtubers and others on the social media has been causing drama and seeking attention. in some cases they have even been trying to spread FUD to cause a bitcoin price crash so that their shorts could be filled and they could make money which they failed at it miserably.

but generally speaking in every exchange hack there is always a strong chance that it was either an inside job or a shady lie that the exchange told the public to get away with a large amount of money overnight. usually there is no way we can figure it out without actual investigation performed by the authorities in real world with them kicking their door down and demanding real transparency not the nonsense they post on Twitter!

Most of the hacks that have taken place till date were almost the same, we don't get the perfect information about the hack. There will be more arguments going on, and no conclusion will be achieved. Same as the Binance hack getting indicated as a self inflicted Quadriga exchange owner death and the missing of private keys were also mentioned as a self inflicted and there is no news on it further stating the truth.

The binance hack came quite unexpected and as a shock to everyone. Although you are right that there is something they might not have told us, but let's wait and see how it goes.

Pretty risky move if you ask me.

On one hand, people don't seem to care about exchanges getting hacked nowadays, it's like it's become the norm to see at least one exchange getting hacked every month, people fall for 'optimism bias' because they're simply too lazy to own their privates keys, thus why you don't see an exodus of users jumping from one exchange to another after suchs news, let alone a brand new DEX created by the ones who just got hacked,

On the other hand, the consequences that this could've had were immense. I say "had" because, even though Binance's reputation took a big hit, I feel they got off easy thanks to the bull market and the minimal impact that the news had on the prices, otherwise, this could've been a major disaster, for both Binance and the cryptosphere.

Overall, I would discard this theory, to be honest.

I hope that what happened with binance (HACK) for the last time, this is very detrimental and makes me worry. You are right, that does not affect the price of bitcoin, but raises many real questions. Hopefully not many people are turning to using other exchanges.

I have gone through some comments on this thread and seen so many conspiracy theories but the one that got me thinking deeply is the withdrawal limit of 100 btc.. I am now of the opinion that of a truth this was an inside job.. Because I doubt any user can do that without having access to codes and other integral components of the binance exchange..

there was no hack but a drama !binance ceo is a clever person and he just transfered that btc to his dex wallet.
i am sure.

Binance believed that they will never get hacked but in the eyes of hackers it is not something different from other exchange so it got hacked as well but binance was prepared for that so they did't lost their reputation much.Why they need to ruin their own reputation?

Nobody wants to get hacked especially Binance itself.
There are different theories and statements regarding the hacking incidents which blame and telling that Binance is also behind the incident but nobody can prove it. I guess hackers are just smarter these days so we couldn't put all the blame in Binance.

I agree to the point that if someone has really stolen and transferred that much amount of bitcoins from binance then binance should be more transparent and share all the details with the public especially the tracking link of the transaction where hacker was able to transfer 7000 btc.

Hmmmm, I don't really believe that binance was hacked, saw it as a false belief that is meant to be true. But even if they were truly hacked, binance on the others hand was well prepared for it

There are many questions that one can possibly ask in regard to the recent Binance hack. Although, there's the possibility that this hack never took place, and just Binance tried to play their games on Tether saga, Another issue is that, if the hack took place, it will be as a result of an insider and amount not upto such huge amount mentioned in the hack.

I'd say if this is a conspiracy to play victim, it's a highly risky one given the transparency of the bitcoin ledger and the need for record-keeping in whatever jurisdiction they are at. I see no reason why Binance would fake a hacking theft given that it tends to diminish public trust in the platform, and given that they were insured by themselves anyway.

There is one of the reason we can say yes that is a reason we can say binance is actually hacked or not. Maybe just one public interest and their trust so they just acted like they got hacked maybe they got hack and the 7000 Bitcoins where stolen and as we know they are not moved from the hacker address.
But still, it can be all an act to get public trust

For me as far as they returned peoples money and everyone is safe thats whats basically needed for progress I think so lets hope that never occurs again and as for the 7k transfer thats actually very weird but it might be they got through some of their tracking system unexpectedly

The transparency of centralized exchanges is debatable and obscure. The issue with centralized exchanges however i this.
 Quite possibly's Binance could complete a self incurred or this hack doesnt truly occurred. In any case, knowing Binance notoriety, perhaps these charges could be false also.
A major crypto exchange, does they truly need to do a trick this way? Consider it. I surmise they could do it on the off chance that they are urgent to have money however they are the number 1 exchange. Despite everything I trust CZ and enemy the record hacked occasions arent made arrangements for something. Programmers are presumably getting a charge out of now their stolen assets.

And also, I really don't think that it is self-inflicted at all. This incident have negative impact on their security image so there's no reason for them to do that at the expense of their reputation. But I think, it is one lesson for them. Invest their money also in tight security measures.

Funny bullshit, if there will be a bull run, no matter how powerful such companies are, they can only delay it for a while and there must be good reason for that considering the cost.

The Binance hack has happened for sure but  it could be an insider job or with a help of and insider who was aware how all the security gates work.
Hopefully, we will have some results of the investigation soon and that it will be public.

It is already said, binance told us that they have a security breached, in that case, even any amount of bitcoin can be accessed through that entry point since their security has been damaged. What good in here is that, if binance found out the track point, then they can provide now a resolution and increase their exchange's security.

what strange is that it was around 7000 bitcoins each time. is this supposed to be a hidden clue that it was the same hacker every time? nevertheless, really bad, that binance has lost two times so much money. other companies would be broken with such sums of money.

According to their most recent blog post, Binance are striving to maintain the highest degree of transparency, but are concerned that sharing too many security details will tip off hackers and ultimately weaken their own security. Nevertheless, I do believe it’s important for the community to understand what happened

With how they succeed with their business I also agree that they've won't let this incidents to doubts their service, the security breach always the
target of hackers, and with this open opportunities they will grab it right away and do everything that will benefits them.

Interest of investors and traders will be eyeing with this issue, whether it's for real or not.

I don't know what really happen to Binance, is it really hack or not? I think they just want to create FUD to bring down bitcoin who knows?.

I think it doesn't matter whether it was a PR campaign from Binance or a real hack of the exchange. As a result, everything ended well, the price did not fall, all the money remained in its place.

I don't think the Binance hack was self inflicted,  it happens really,  what shall it profit the CEO of Binance to do such thing, and that's a big FUD if it happens to other small exchange,  despite the hack lots of people still using Binance exchange

what will be binance benefit lying about hack which could dent binance reputation. i can't believe an exchange will lie about a very sensitive issue like this.

Because they didn't send the BTC from a user's account. Hackers allegedly gained access to one internal wallet of Binance and they sent the BTC skipping the exchange's restrictions.

The similarities look a bit surprising and suspicious, but why would Binance do that? Why would they want to lose the missing trading fee in this period when trade is closed?

The theorem is complex. Anything can happen, one thing am thankful for is that after the hack, market went up and bitcoin just got bullish, so people needed not to panic over the supposed hack.

I don' think the hack was "Self Infected" or it didn't take place or anything. Probably people are just trying to spread FUDS though this. Well, you got those news from the Youtube. Most of the Youtubers actually spread or wrong or misleading information just to get views for themselves! Don't blindly believe those videos. Do your own research and see what you get.

No one can tell for a fact if the hack actually happened. Nice post here with some citations, making it valid. But the big question is: if the hack is fake, what will Binance profit? So I still have 70% conviction that the hack occurred, since CZ knows announcing a hack will bring distrust to an extent. The delay before reopening might also be to tighten security. Only Binance team knows if the hack actually occurred, this particular hack scenario is strange.

I also just realized why this could happen. as far as I know binance is an exchange that has good security. strange if it can be hacked. and 7000btc but it doesn't affect the price? This isn't strange either. in the past every time there was hacking there was always a dump on the market. so if it matches what OP says. maybe this is just something planned.

It seems to me all this because the head of the exchange very skillfully dismissed this situation and did not cause a strong damage to   exchange. In fact, everything will be restored and the money returned to customers.

If truly Binance was hacked, then may the 7000 BTC was transfer to several wallet at the same time but i doubt it, Binance is hiding something about the whole issued. It is good that it didn't affect bitcoin price unlike last year hacks which actually act as one the bear's instrument.

Definitely but one thing catch my attention, on this segment (https://youtu.be/g1NBBdTULGs?t=462) of the video by Chico Crypto, it is kinda interesting how he stated that it is not a hack but rather the incompetence of Binance staff regarding the transfer of their fund to segwit addresses.  It imply that the hack is just a mere cover of their failure that almost cost them hundred thousands of BTC.  It happen since during their AMA they were questioned about implementation of segwet address and CZ is obviously unsure of his answer (https://youtu.be/g1NBBdTULGs?t=361l).  If that indeed happen, it is logical that it is better to blame the error as hacked than announcing the incompetency of their technical staff since the latter would impose more threat and worries to their audience.

I don't think the hacker made the transaction from the platform itself, that limit is set to only the platform and not binance Blockchain, I believe that the hackers didn't hack individual account because it would be impossible to send out 7000 BTC in one transaction, but they send the coin directly from the Blockchain which means that binance should bear all the lost and not put it on any of their members, unless they can explain why a person could be able to withdraw 7000 BTC when the withdrawal limit is 100 btc.

Binance got hacked and 7,000 BTC were stolen.

Binance temporarily closes withdrawals and deposits and announces they will buy back their 7,000 BTC (worth $42m at time of hack) using an emergency fund they have set up. Essentially pumping a new $42m into the game.

And then BTC pumps to the sky.

Coincidence?

Self inflicted nah, I would like to think there is some form of sabotage to try and disrupt the upcoming Binance chain which might give ethereum serious competition once it's live. But it's to early to come to a conclusion.

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Binance now has an emergency fund to compensate it's customers if a hack or anything happens, so the exchange can't really affect the price of bitcoin...our funds are covered.

Either ways I think the most important figures is that there are no self inflicted losses on the part of binance users
That would have been the worse of all

But if personal opinion; I think binance drawed the hack upon theirselves

Seriously I wonder how a $40M lost from an exchange did not affect it much. It appears as if nothing happened, it equally did not affect the general bitcoin price at that time just like a previous news like that had done in 2017. I equally had such scepticism as we have known it is not possible for a withdrawal of such huge amount to happen once. Whatever it is, one needs to be careful an never leave huge amount on these exchanges

Wow, this is really interesting and I have to say that you did a good job in doing research and stating out reasons as to why the Binance hack might be a fake news, unlike others that will come here to say something and won't even give reasons as to why they believe that is happening lol.

With the facts you've given here, I'm also starting to believe that this is fake, cause I don't really know why they have similar stats, both 7000 BTC. But whatever it is, the most important is that they were able to secure users funds. And this is also shows why you should trust any of these exchanges at all.

They should not undermine how the investors and traders think if they find out they are making this out and just try to manipulate people, they are going to protest and look for a better alternative, there so many exchanges in the market and everyone vying to get a slice of the market.

Do you know that there are around 300 exchanges out there and more than 90% of the crypto users are using Binance? In other words, more than 90% of the market is captured by Binance and that is the reason of the success of the exchange. It has made enough money to deal with the hack and the loss of the users. Another exchange would not have survived such an attack.

If big exchange such Binance has been hacked, some speculations about it won't be weird.
Let watch close the bitcoin address that drained 7000 btc from binance wallet, we will know the hack was real or fake.
But we glad all of users funds are safe guaranteed in their possession.

Why they have to say that they were hacked if it didn't happen at all,they know if there is a hack it will surely affect their reputation and income so its actually happenen in my opinion.

I do not think that they have made such an announcement only to make a bit more hype around their exchange. Moreover, it harmed their image a bit, so it makes absolutely no sense to say that they did the hack on their own.

an effect might occur, but binance is a large exchange, not many will be affected if the assets they hold are safe. maybe some people had panicked hearing the news, but not many people would leave binance.

I don't think they faked the hack. In my experience the only time an exchange would fake a hack is an exit scam where they run off with all the money and let investors take the hit. In the case of Binance, the hack was relatively small and Binance covered all the losses in an effort to make it go away. I am sure they have had people stop storing their money on the exchange and the hack has damaged their air of invulnerability. They would not do that to themselves and I have not seen any explanation of why hacking themselves would serve their interests.

much traders glad to be binance's customer.they provide good services , high liquidity and many products else.although binance hacked , but it not impacted to binance it self and cryptocurrency market.market still going on well nothing bad thing happen.

Conspiracy theories about hacking. I am surprised. Of course it is not clear how the hacking occurred. But it’s not worth spending time on it. And then we definitely can not trust anyone. Hackers, conspiracy theories. Will finance return money to investors? then there is no problem.

its not good to acused someone of doing something without evidence
besides hacking on exchange is very usual this days
but we cannot deny that there must be an inside job, or something
since they are very aware of hacking that is happening before the incedent

There is a possibility that the person behind these things is just the same. Or two different people just working together to make it look like there is a hack going on but the real intention as was to make us look dumb. Anyway, this is still a good conspiracy by the OP.

Binance has done this right very easily. people regained their trust. this is the most important. very difficult to win. I need to hear respect for those who press

The amount hacked according to Binance says that API users use to trade and withdraw. Then the hackers took advantage of that and appropriated the property of many users Binance

Saving our assets in exchange is not a good idea. Because each exchange is likely to be hacked if there is a gap in the security system. And what I know is why binance is because there is a gap used by hackers. But I know what the details are, if not wrong, 2FA or API that might be used by the hacker.

I think this is because of the influence of coin price movements in a very fast binary exchange that can make many people believe in binance again.

How come.no big news regarding with the hack? Is it being discretely decided not to tell the public to avoid panic selling from.the community? In this case BINANCE will going to fall a little bit because the community can no longer trust the exchange.

However, in my opinion it seems not really true because binance anyone could give fake news by creating fake accounts and claiming to be the CEO of binanance exchange and then give fake news.

Who knows where is the truth, we will probably never find out the real story what happened to Binance, but never mind, do not use centralized exchanges and you will be okay.  8)

That's crazy.
Biggest exchange like binance is hackable by the hackers, the hackers are so smart and evil.
We should be more careful, and not to place all of our portofilio into one wallet

Whether its self inflicted or its really hacked or they just make a fake drama, since bitcoin still ok and pumping, then I don't really care about this accussation lol.

IMO the hacked amount is $40,000,000 but they said they have enough funds to cover this losses and will replay everything to the traders but its still affected BNB price so they faced real hack.

Hackers always seem to find a way in. At least Binance was able to recognize and correct the issue and cover the losses. A smaller exchange could not do that.

I guess we can close this one out, it was never proven that it was self inflicted on at least an inside job or just to hype their DEX.

They are already open for withdrawals and deposits and business as usual for Binance. But I'm sure they have heighten their security so that this kind of hacks won't happen on their backyard again. And yes every penny is covered by their SAFU program so this is a non-issue already.

Yeah I guess time to lock the thread, though during the time when funds where freeze, there is a suspicious movement of BTC out of the Binance wallet but well that is another story, anyway, trading is all good in Binance and all client have their fund.  Self inflicted or not, only the insiders know :)  Just always remember, never use exchange platform as bank to store your coins and token if you won't trade them.