What's the point of these hacks?

[FuryBeast]

I don't like conspiracy theories too much, but it seems like the point is to dump BNB, which went parabolic recently. I'm not stating this, just a guess.

[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.

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).

This affects those people who trusted a little. Because your funds are #SAFU. YOUR FUNDS ARE SAFE. And if you'll going to compare 7000 BTC to the whole volume of Binance that's nothing. That's just 2% of their btc. Anyway your funds are safe so it does not affect me I can still saw my funds.

[Fundalini]

Obviously, people hack to gain money and this time it is not an exception. Loosing money is indeed a huge setback but on a positive note, security weakness can now be reduced or even be gone and further security exploits would be thwarted.

[Eildosa]

I don't think Binance exchange set it up. Why would they do that? Just now really hackers become smarter and any exchange becomes vulnerable. But Binance did a great job with this and it shows her professionalism and increases confidence.

[libert19]

I'll discard both of your points. There is nothing 100% secure, and binance is no exception. What they did right was having most of funds in cold storage.

[BlackFor3st]

There are plenty of reasons behind this attack and I am wondering also if what is the main reason for the attacker. If it is from the government that want's to ruin the reputation of crypto currency then they have successfully done the part of it.

The article is spreading very fast, as I also read in yahoo.com article in which they tackle about binance being hack and lost 7000 btc right after the attack happened. But if the hacker will give a unanimous tip why they have done it aside from money then it will surely clearly answer our doubts and questions.

[btc_angela]

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.

What incentives do they give if they fake this hacked? They are in the business of making money out of crypto, so I don't understand why they wanted to give it a bad reputation.

2. They are stupid and really had security issues

Everyone here is at risk, even Binance, hackers are smart and they just outsmarted one of the best trading platform with good security measure. What do you expect?

[waynechong1995]

Arguably there's multiple motives that aren't clear or justified at all... Hacking could be for personal gains, by exploiting API vulnerabilities through stolen private keys. Which is not what to be expected as the funds are definitely seized control by other exchange, maybe most of them. Some say its a gimmick for the exchange to get more BTCs as their refunds are all in BNB (some source i seen). Hacks are pretty common but on big exchanges though

[Fabienne_ayy]

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

I would go for the first variant because it's a big and trustworthy exchange existing in the market for a pretty long time, it's just accidental false which can be easily fixed

[Artemis3]

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.

That's what they did. 7000+ ₿ is what they see as active transactions, so 2%. This implies they have at least 343000 ₿ more, in cold wallets.

Yeah, those 40 million were the change... An exchange is pretty much like a bank, using full reserve banking practices. They charge you for deposits and withdrawals, like a full reserve bank should do, its what their main income is from. And a part of that is covering for the stolen funds, same thing a full reserve bank would do should thieves steal the bank.

[sehoon]

Giving bitcoin a bad reputation is just useless because it is not different from fiat money getting involved in scams or illegal activities. It's just all about the people who can't afford better security like storing buying ledger for better security. What's the point of storing your funds in the exchange sites anyway if you know that there is a possibility that it can get stolen there?
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[Kakmakr]

I am going for option 3 which is not there and that is basically that these hacks are done by someone from within these exchanges. It will not be the first instance where a inside job is the cause of some exploit in the system. The person on the inside becomes aware of some exploit and they get someone to "hack" the exchange and then share the spoils. 

You can even add a option 4, "The hack was done by some government hackers, to discredit Bitcoin". We have already seen how North Korean hackers have been active in the Bitcoin scene. 

[Korkorjkk]

The main aim of hackers is to steal resources and most at times money. That is the main reason why they hacked Binance exchange, but I think they also want to scare people from investing in Bitcoin since you will think your money is not safe.

[muratsink]

after hacking at Binance, I got a lot of lesson.  yes.  each exchange has a positive value and a negative value, Binance is an exchange that has many positive values.  but.  Binance cannot guarantee that our assets are stored properly and safely. 
and also we know that the crypto trading volume at Binance is very high.  but saving assets in a wallet exchange is not a good choice.  included in Binance's wallet.

[MakeMoneyBtc]

Giving bitcoin a bad reputation is just useless because it is not different from fiat money getting involved in scams or illegal activities. It's just all about the people who can't afford better security like storing buying ledger for better security. What's the point of storing your funds in the exchange sites anyway if you know that there is a possibility that it can get stolen there?
'

Actually a ledger wallet is not that expensive this days because you can find one of those wallets at the price of 50$. I understand that a few years ago the price of a ledger wallet was 200-300$ and some people could have an excuse for not buying one but right now there is no way someone can say they can't afford to buy one especially when we are talking about the security of their funds.

[Indrawan77]

Sometimes people just underestimate the hacker and not updating the security, I believe Binance doesn't got any bad intention that can ruin its reputation, the owner need to pay more attention to this hacking one more mistake people will leave and find other exchanges

[squatter]

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

No exchange is unhackable. There is always a possibility (however slim) that a hotwallet will be drained. Exchanges ought to strive to minimize the value exposed to hotwallets, so they can cover the losses from their own reserves -- Binance did that in this case. In the alternative, exchanges can obtain insurance policies for their hot wallets like Coinbase has done.

We don't have all the details about what happened yet, but from the statements that have been made, Binance's servers weren't actually compromised. It was individual account holders who got phished or had SIM cards ported, and the attackers successfully cashed out from many accounts at once. I assume many other exchanges wouldn't cover the losses in this scenario.

[P4ndoraBox]

Inside job.

[Malsetid]

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

Obviously the first point is way off. The binance hack happened right before bitcoin zoomed past 7k so technicaly, it didn't make people doubt and lose faith, if that's what they're aiming for. And binance has an insurance covering the lost btcs so i don't think it was done intentionally. Hell good hackers broke through their security it seems and it's not really impossible that there are hackers that good.

[Padawan007]

If there's a good thing from this mess , binance should improving the security less some hacker from State sponsored group will try again in near future