What's the point of these hacks?

[shield132]

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

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[dothebeats]

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.

[kryptqnick]

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.

[earnfreecoins]

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.

[Ailmand]

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.

[dentolas]

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...

[hatshepsut93]

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.

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.

[shield132]

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.

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).

[r1a2y3m4]

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.

[Isiaka208]

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.

[samcrypto]

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.

[salty]

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.

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).

[uneng]

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.

[vit05]

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

[teddyelwyn]

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

[MakeMoneyBtc]

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.

[AmoreJaz]

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...

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

[huhhuh18]

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.

[Genemind]

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.

[Astvile]

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