Binance lost $40.7 million to hackers, which exchange is next!!!

[xtraelv]

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

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.  

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

Identity theft is very popular.

[zgrdyg]

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.

[TimeBits]

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

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.  

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

Identity theft is very popular.

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?

[xtraelv]

so in other words, no.

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

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 ?

[DrDoctor1234]

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.

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.

[TimeBits]

so in other words, no.

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

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 ?

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.

[xtraelv]

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.

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

[mrdeposit]

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.

[l8orre]

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

[Abdo_Massud]

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.

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.

[xtraelv]

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.

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.)

[xtraelv]

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.

You should not always follow his advice....

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.

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.

[l8orre]

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.

You should not always follow his advice....

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.

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...

[leps]

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 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?

[FreeEarnsActivist]

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

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  .

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

[Landak]

maybe the next exchange that will be hacked is KuCoin or bw.com or others  

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.

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.

[figmentofmyass]

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.

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......

[TimeBits]

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.

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.

[leo99]

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 

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

[squatter]

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.

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.