What's the point of these hacks?

[CryptoBry]

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.

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[pooya87]

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.

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.

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

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.

[spadormie]

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.

[stompix]

But recently there was a hack and 7000btc were stolen. So what was the point?

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.

[AjithBtc]

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.

[proTECH77]

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.

[Pursuer]

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.

[Nadziratel]

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.

[CBANX3]

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.

[shesheboy]

I will say hackers are smarter than Binance as they studied their security network find their loopholes and then executes their plans.

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   .

Binance hack is the wake-up alarm for other exchanges to make their security walls stronger.

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 .

[jseverson]

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

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 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.

[talkbitcoin]

Whenever there happens a hack people get a negative opinion on bitcoin. ...

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.

[gabbie2010]

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.

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.

[andreibi]

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.

[klaaas]

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.

[DdmrDdmr]

<…> 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).

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.

[Dingdongjl]

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).

[Ibizugbe1]

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.

[Broly46]

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.

[jak3]

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.