what do you make out of Binance hack

[tiedcoin]

On Tuesday May 7th, 2019, Binance suffered the 6th worst cryptocurrency hack in history with around $40 million in Bitcoin stolen from the exchange.

In a statement, Binance CEO Changpeng Zhao calmed the market. The hack only affected Binance’s BTC hot wallet, and no other wallets were impacted. Around 2% of Binance’s total BTC holdings were stolen.

Acting quickly and stopping all withdrawals, Binance issued a statement:

Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

In July 2018, Binance setup a secure asset fund (SAFU) for users, allocating 10% of their received trading fees into the fund designed to act as an emergency insurance policy to protect users against losses in the event of a malicious attack.

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

https://www.altcoinsidekick.com/blog/wonderwall?

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[Ailmand]

On Tuesday May 7th, 2019, Binance suffered the 6th worst cryptocurrency hack in history with around $40 million in Bitcoin stolen from the exchange.

In a statement, Binance CEO Changpeng Zhao calmed the market. The hack only affected Binance’s BTC hot wallet, and no other wallets were impacted. Around 2% of Binance’s total BTC holdings were stolen.

Acting quickly and stopping all withdrawals, Binance issued a statement:

Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

In July 2018, Binance setup a secure asset fund (SAFU) for users, allocating 10% of their received trading fees into the fund designed to act as an emergency insurance policy to protect users against losses in the event of a malicious attack.

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

https://www.altcoinsidekick.com/blog/wonderwall?

Well the binance hack did not even shake the over-all market unlike the recent attacks on other exchange. Instead it pushed Binance to upgrade their whole platform and tighten their security to make sure that all their users will be safer this time around.

[asayoyaasa]

Are you by any chance using Internet explorer caveman?
Anyway, I found you and user beaxchange have the same interest in one topic while he discusses reorg there and you discuss this.
Hey, you two just register one minute apart too, coincide? I think not

[cipherhut]

Binance hacked was quite in a news for a time but CZ@Binance has wrapped it smartly and in a short duration. Binance hack was the lesson for exchanges with weak security covers as hackers are becoming smarter and poised with technology hands so exchanges need to be one step ahead of them in every aspect.

[muslol67]

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

This was a very important issue. I think the market would have been badly affected if it reflected the damage to the incident.

[palle11]

I think the hack can be referred to as a blessing on the other way because looking at the coin which is suppose to be the first hit, one can hardly say it had a problem, it keeps soaring higher and following bitcoin price movement.

[aioc]

On Tuesday May 7th, 2019, Binance suffered the 6th worst cryptocurrency hack in history with around $40 million in Bitcoin stolen from the exchange.

In a statement, Binance CEO Changpeng Zhao calmed the market. The hack only affected Binance’s BTC hot wallet, and no other wallets were impacted. Around 2% of Binance’s total BTC holdings were stolen.

Acting quickly and stopping all withdrawals, Binance issued a statement:

Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

In July 2018, Binance setup a secure asset fund (SAFU) for users, allocating 10% of their received trading fees into the fund designed to act as an emergency insurance policy to protect users against losses in the event of a malicious attack.

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

https://www.altcoinsidekick.com/blog/wonderwall?

I think Binance acted in the right manner by addressing the issue in a very timely manner and assuring everyone that everything is taken care of, so we are back in business and Binance traders are trading with a peaceful mind, but there were reports that this hacking incident is just a drama, we never know.

[xvids]

On Tuesday May 7th, 2019, Binance suffered the 6th worst cryptocurrency hack in history with around $40 million in Bitcoin stolen from the exchange.

In a statement, Binance CEO Changpeng Zhao calmed the market. The hack only affected Binance’s BTC hot wallet, and no other wallets were impacted. Around 2% of Binance’s total BTC holdings were stolen.

Acting quickly and stopping all withdrawals, Binance issued a statement:

Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

In July 2018, Binance setup a secure asset fund (SAFU) for users, allocating 10% of their received trading fees into the fund designed to act as an emergency insurance policy to protect users against losses in the event of a malicious attack.

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

https://www.altcoinsidekick.com/blog/wonderwall?

It is a devastating blow on Binance it is a huge lost and lesson for them.
But look what it made them do and how the community act.
The event just showed that Binance is indeed a great exchange platform and the community is very fond of it that they insist to donate in Binance to help it recover.

[okala]

The hackers display the level of the weakness of the security setting of the exchange and this to me serve as a wake up call to binance and every other exchanges to upgrade they security system to a more sufficient level to combat hack and malware.

[sheenshane]

Have you already said that it is only 2% bitcoin has been lost and I think that amount was covered by the Binance through the SAFU and that was a too small amount for them. And have you noticed that there's haven't effect on the market price movement? They are back operating now and all went fine and back to the normal operation of their exchange. A lesson to learn by them and now probably they upgraded the security system to avoid possible hack again.

[squatz1]

On Tuesday May 7th, 2019, Binance suffered the 6th worst cryptocurrency hack in history with around $40 million in Bitcoin stolen from the exchange.

In a statement, Binance CEO Changpeng Zhao calmed the market. The hack only affected Binance’s BTC hot wallet, and no other wallets were impacted. Around 2% of Binance’s total BTC holdings were stolen.

Acting quickly and stopping all withdrawals, Binance issued a statement:

Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

In July 2018, Binance setup a secure asset fund (SAFU) for users, allocating 10% of their received trading fees into the fund designed to act as an emergency insurance policy to protect users against losses in the event of a malicious attack.

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

https://www.altcoinsidekick.com/blog/wonderwall?

Well the binance hack did not even shake the over-all market unlike the recent attacks on other exchange. Instead it pushed Binance to upgrade their whole platform and tighten their security to make sure that all their users will be safer this time around.

This is because Binance had a safeguard if they were ever to get hacked, they knew that something might happen in the future and they put a portion of their trading fees towards a self-insurance policy. (Read here - https://www.binance.vision/glossary/secure-asset-fund-for-users)

The sad fact is that something like this has to happen to ensure that innovation and security are put forward. An innovation with security wouldn't happen on Binance if not for a hack, sad, but it's the truth.

[CryptopreneurBrainboss]

what I make out of Binance hack is, don't trust any centralized exchange with your fund as they all can be hacked. Sure they could secure every users fund but what about the future. For now the scammers stole just 7,000BTC that's not much for an exchange like binance. how secure will users fund be incase of future hack and the amount stolen is much more?. You can use centralized exchange for trading but don't store your fund on those exchange.

[Jating]

The issue has long been forgotten. After the hack has been confirmed by CZ, the price didn't move that much, on the contrary the event has a good effect because the price continued to surge and even hit as high as $8200-$8400.

So I guess it's already business as usual, they've allowed withdrawals and deposits already and have implemented several security measures so that it won't happen again.

[Golftech]

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

This was a very important issue. I think the market would have been badly affected if it reflected the damage to the incident.

Before mostly when incident like hacking exchange will immediately affects the whole industry, panic will start to happen and the value of most coins will fall, but with this setup which binance use the insurance money to cover loses, it's just another news that passed but nothing really affects the industry, and looking now with how the business runs and how the token gained more supports.

[Baofeng]

With the news Binance is covering 100% of exchange user losses from their SAFU fund, for Bitcoin, it was back to business as usual.

This was a very important issue. I think the market would have been badly affected if it reflected the damage to the incident.

Before mostly when incident like hacking exchange will immediately affects the whole industry, panic will start to happen and the value of most coins will fall, but with this setup which binance use the insurance money to cover loses, it's just another news that passed but nothing really affects the industry, and looking now with how the business runs and how the token gained more supports.

But there was an incident of a hack in 2016 as far as I remember. It was a Bitfinex hack, the market was tested that time, and even though the price fall after the hack, if immediately bounce back and eventually ended in the bubble in 2017. But indeed, with SAFU in place, Binance was able to somewhat stop the bleeding, and there was no significant dent on the price after the incident.

[Beerwizzard]

Just IMHO but it feels like exchanges should be legally forced to keep some money in reserves and repay their users in case of any security issues. At least no one would ever try to steal money from his own exchange. Exchanges are earning a huge money every day, I'm totally sure that they have enough funds even to repay their users from their own pocket.

[dothebeats]

Quite a bit late to the craze of the hack, but props to Binance for the oversight and anticipation of the said event knowing that the scene is plagued with hackers and nefarious people. If most exchanges do this as well, then perhaps we can prevent Gox 2.0 from happening and users being robbed off of their money that exchanges should be safeguarding in the first place. Hacks are becoming more and more common now that almost each month we hear an exchange getting hacked.

[Bulgarianhawk]

A few things became clear after the hack:

1) Centralized exchange is always a centralized exchange; it can manipulate not only with prices but also with permissions.
2) hacks are not always hack - sometimes just planned action for the benefit of somebody
3) binance managed the hack well and nobody blame it because of this hack
4) binance is still number 1 exchange for the majority

[IPVPIRL]

I think you all should consider what would happen if the hack was 10x of what happened. You all suck up CZ and Binance and have huge amounts parked there thinking they got you covered? It was a 40million hack and what happened was CZ panicking and asking Jihan Wu if rolling back the chain is an option. Can you imagine what would have happened if the hack was 70,000BTC (400m$) instead of 7,000BTC? Do you seriously think you funds are safu there and that they acted professionally? Then they took it to twitter and unleashed a thousand bot accounts with copy-paste tweets. This was hillarious. I instantly withdraw BTC and ETH the moment they let me, which was 2 weeks later. If you trust any exchange you basically risk losing it all.

[JohnsonX]

have they released any details of how it happened? I don't understand how is it that difficult for exchanges to keep coins securely,?