Binance hacked AND proven to be wash trading

[Chris!]

First, Binance was accused of ~13% wash trading. Pretty huge in the grand scheme of things. With their huge volume it's a pretty hefty amount of washtrading. https://cryptobriefing.com/binance-wash-trading-icebergs-tips/

Now they got hacked and lost BTC7000. https://decryptmedia.com/6930/binance-hack-security-breach

It's gone from bad to worse. The next hack could very easily be even worse.  Let this be a chilling reminder to hold your own private keys. Not your keys, not your coins.

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[Aero Blue]

First, Binance was accused of ~13% wash trading. Pretty huge in the grand scheme of things. With their huge volume it's a pretty hefty amount of washtrading. https://cryptobriefing.com/binance-wash-trading-icebergs-tips/

Now they got hacked and lost BTC7000. https://decryptmedia.com/6930/binance-hack-security-breach

It's gone from bad to worse. The next hack could very easily be even worse.  Let this be a chilling reminder to hold your own private keys. Not your keys, not your coins.

Yep its a good example of the common trade-off between ease-of-use and security, it's annoying that both can't hold true most of the time.

[gentlemand]

Binance is still one of the greatest crypto exchange ever

I have never understood the reverence binance attracted and still don't. And the guy in charge tweeting about researching doing a reorg of the bitcoin Blockchain to claw back his poxy money is a glaring demonstration of his lack of understanding and egomania.

It astounds me that anyone who's spent more than five minutes reading about BTC believes it's a viable idea. If you weren't sceptical about them before you should be now.

https://www.coindesk.com/binance-may-consider-bitcoin-rollback-following-40-million-hack

[andreibi]

I have never understood the reverence binance attracted and still don't.

Oh, there will always be fanboys. There was with Mintpal vs Cryptsy. There used to be a rivalry between Bittrex and Poloniex users. Nowadays since the market is much larger, tribes interact with each other less.

[CryptoBry]

Binance is still one of the greatest crypto exchange ever

I have never understood the reverence Binance attracted and still don't. And the guy in charge tweeting about researching doing a reorg of the bitcoin Blockchain to claw back his poxy money is a glaring demonstration of his lack of understanding and egomania. It astounds me that anyone who's spent more than five minutes reading about BTC believes it's a viable idea. If you weren't sceptical about them before you should be now.

https://www.coindesk.com/binance-may-consider-bitcoin-rollback-following-40-million-hack

I am sure that the security breach and eventual loss of Binance is a great reminder to people behind Binance to avoid feeding their ego too much. This is a very big lesson for them and should be serving a big notice to all players in the cryptocurrency exchange industry that it is time to inspect all aspects of their platform so no hole can be found gaping and just waiting for a disaster. This recent breach has been sending shock waves to the whole industry and rightly so...let this be like a vaccine the industry needs from time to time.

[NeuroticFish]

Binance is still one of the greatest crypto exchange ever

I have never understood the reverence binance attracted and still don't.

Pretty low fees, no KYC, great liquidity - it really sounds great.
Probably if I would have traded more I would have gotten to also use Binance too. But I didn't.

I somehow didn't like the way they try to evade law. I am also against businesses getting to centralize something in the crypto field. On the other hand they've earned my sympathy in their actions against CRW's coin.

Binance handled pretty well the hack, since they had funds to cover it, it seems. So they may get out pretty well from this.
Wash trading? I guess that all do it because they can. The only way to prevent reduce it is to keep the funds in own wallet.
Bitcoin? I don't know how big effect can have 7000BTC dumped. But I feel that the only part losing could be Bitcoin, and only price-wise and temporarily.

[Viscore]

I would never put in any exchange if my purpose is only to hold.

Binance is a reputable exchange even after this hack as no user's money was compromised, all are covered with their SAFU funds or we call it insurance in simple terms.

About the wash trading accusation, I would not touch that, it's hard to give an opinion when it comes to things about violation of law.
Let the regulators punish them if they've done a violation.

What happened is a warning that even if the best trading exchange can still be hack.
Better not trust only one site, diversify your funds and let's support other exchange to grow so we will not all be in Binance only.

[joniboini]

Prixbit has a big amount of trading competition. And it has $400K prize. I think it may be a great opportunity. In the beginning, the volume will be less and we can get a profit there.

You can't determine whether an exchange is good or not from their trading competition. Look for their policies, their response to customer support, where are they based, whether the team is known or not and so on.

Those trading prices are just a way to attract new user that will surely (or 90%) leave the platform when they've collected the prize.

[Potato Chips]

I have never understood the reverence binance attracted and still don't.

Well, it does seem overhyped to me. tbh I wouldn't be surprised if someone got the idea that "it is completely safe there", but it isn't bad either. If I have to put it in words, it is that all exchanges suck but binance suck less which made it stand out and started the big hype.

[paulk11087]

Binance is still one of the greatest crypto exchange ever. But I think we have to find good new exchanges. Because a monopoly never is good. We had great exchanges like Bittrex, Poloniex, Kraken... etc. But it is not enough. I am searching for always new and good exchanges. I also found a new one. Prixbit has a big amount of trading competition. And it has $400K prize. I think it may be a great opportunity. In the beginning, the volume will be less and we can get a profit there.

 Prixbit is one of the new exchange that attracted my attention. especially when you trade, the acquisition of the mining token is more like successful marketing.

[pixie85]

Craig Wright must be jumping from excitement. Not long after CZ removed his precious shitcoin his exchange got hacked and humiliated. That's an interesting coincidence. Somebody should keep an eye on those stolen millions. It would be another coincidence is somebody were to use them to buy SV. Even if they have nothing to do with SV that would be master level trolling.

[magneto]

Binance is still one of the greatest crypto exchange ever

I have never understood the reverence binance attracted and still don't. And the guy in charge tweeting about researching doing a reorg of the bitcoin Blockchain to claw back his poxy money is a glaring demonstration of his lack of understanding and egomania.

It astounds me that anyone who's spent more than five minutes reading about BTC believes it's a viable idea. If you weren't sceptical about them before you should be now.

https://www.coindesk.com/binance-may-consider-bitcoin-rollback-following-40-million-hack

The rollback approach is clearly not something that should be pursued, and apparently even CZ has agreed that after consulting a bunch of people.

I think that the main thing that attracted people to Binance wasn't the fact that their funds are more secure in there or anything, but the fact that they had the most liquidity for any exchange that allowed semi-anonymous accounts to be registered. People simply don't want to go through the hassle of having to verify themselves on exchanges.

But this again shows that things can go south even with an exchange with a good track record, so as Chris! said, make sure that you take coins off exchanges and onto a bitcoin address that you actually control whenever possible.

Have they already publicly stated the method by which they'll be filling in this loss, btw?

[gentlemand]

Have they already publicly stated the method by which they'll be filling in this loss, btw?

They're paying it out of their own pocket.

https://bitcoinexchangeguide.com/hacked-2-of-binances-btc-holdings-will-be-covered-in-full-by-safu-funds-withdrawals-halted/

I think that the main thing that attracted people to Binance wasn't the fact that their funds are more secure in there or anything, but the fact that they had the most liquidity for any exchange that allowed semi-anonymous accounts to be registered. People simply don't want to go through the hassle of having to verify themselves on exchanges.

It seems a little strange to me that you'd confine yourself to one exchange and a limited sum to avoid KYC.

[squatter]

I think that the main thing that attracted people to Binance wasn't the fact that their funds are more secure in there or anything, but the fact that they had the most liquidity for any exchange that allowed semi-anonymous accounts to be registered. People simply don't want to go through the hassle of having to verify themselves on exchanges.

It seems a little strange to me that you'd confine yourself to one exchange and a limited sum to avoid KYC.

That thinking might apply to professional traders and corporate entities, but unverified users can withdraw 2 BTC per day. That's nearly $12,000 per day at these prices with zero documents -- in fact, not even a name or address is required. Their stablecoin order books compare to the major fiat exchanges and they have ample altcoin markets. That's more than enough action for the average retail user, which is their primary market, hence why they've been rolling out credit card buys and things like that.

I avoid KYC like the plague. I only ever did it with one reputable and licensed fiat exchange and even that feels like shit. I've been pretty happy with Binance's verification tiers and limits.

[stomachgrowls]

Have they already publicly stated the method by which they'll be filling in this loss, btw?

They're paying it out of their own pocket.

https://bitcoinexchangeguide.com/hacked-2-of-binances-btc-holdings-will-be-covered-in-full-by-safu-funds-withdrawals-halted/

Incase of exchange hacks this should really be in first priority where filling up or covered the lost funds.For 7000 btc they would really do such thing
even pulling it out on their own pocket 100% yet this is on exchange with their reputation.Just wondering on whats SAFU and as i able to search its the acronym meaning of Secure Asset Fund for Users (SAFU).
Each exchange should have this kind of reserve.

They might able to resolve it out but that 100% trust into its users do already decreased and im sure with that.

[xtraelv]

t

First, Binance was accused of ~13% wash trading. Pretty huge in the grand scheme of things. With their huge volume it's a pretty hefty amount of washtrading. https://cryptobriefing.com/binance-wash-trading-icebergs-tips/

Now they got hacked and lost BTC7000. https://decryptmedia.com/6930/binance-hack-security-breach

It's gone from bad to worse. The next hack could very easily be even worse.  Let this be a chilling reminder to hold your own private keys. Not your keys, not your coins.

The wash trading does not appear to be initiated by Binance and the report said that it was low in comparison to other exchanges.

Wash trading is often done by coin devs and coin communities to make their coin appear to have more trading volume.  Some exchanges even encourage it by giving certain users access to extra low fee or even fee free trading.

It is only logical that some of them will target the largest exchange for that.


The hack just proves again that too much $ in one place makes a juicy target for thieves.

[basicnecromancycr]

I don't like Binance since it started to act as a monopoly. I'm in a demand for an alternative. Maybe Bitmax or any one of the new arrivals like PrixBit which is Korean and which has a great trading competition $400k indicating they don't have the money issue. Also, incentive mining is a difference. What Binance provided is ended. Other big and famous ones are not in good shape.

[bL4nkcode]

Just wondering on whats SAFU and as i able to search its the acronym meaning of Secure Asset Fund for Users (SAFU).

Never thought that its an abbreviation of something, all I know it means as safe, as known phrase of cz, funds are safu.

Let this be a chilling reminder to hold your own private keys. Not your keys, not your coins.

However, traders will not absorb this reminder, but will prevent of losing huge funds, if and only if they'll do. Just don't leave coins on any exchange for a longer than the its time needed for trading.

[sheenshane]

Let this be a chilling reminder to hold your own private keys. Not your keys, not your coins.

However, traders will not absorb this reminder, but will prevent of losing huge funds, if and only if they'll do. Just don't leave coins on any exchange for a longer than the its time needed for trading.

This was all I thought that Binance was one of the largest exchange and they must have too many layers of security in securing their fund but now sadly they are one of the victims by the hackers which is very genius to steal fund. They can refund of what are the losses but you can't blame their costumer/traders to not to put a huge amount on the exchange, they need customer trustworthy.

[BrewMaster]

things over at Binance will only get worse because up to this point they were only making profit and counting their money. now that they have lost $40 million dollar in an instant they have to start working hard to make it back and that requires all kinds of shady stuff in the background.
i gave up on this exchange they day they started to legitimize scams also known as ICO and came up with the new name of IEO. in ways this hack was a good thing, it stopped them from damaging the whole cryptocurrency market even for a short time.