Is Binance Hacked ?

[sidrabtc]

The last 30 minutes of serious movement on social media about the possible hack of Binance with founder CZ also tweeted about this even though there is no confirmation about this, and they are also claiming that all funds are safe, but millions of their customers are now checking their funds.

Around $2 billion in funds are moved away to a new address, which was created a few hours ago, and the crypto market is also on a big decline due to these rumors. Updates are still coming, but things are not looking good due to these fund movements.

Source:   Link

[New Judgement]

There were news about the hack, although the exchange has said they will publish detailed information about the whole incident. Although they said there no need for customers to be worried about anything as their funds are safe. Report have it that Circle has freeze the USDC inside the wallet that was associated with the exchange hack. Waiting for the exchange to publish the full details of what happened. These are terrible times for crypto investors.

[o48o]

There were news about the hack, although the exchange has said they will publish detailed information about the whole incident. Although they said there no need for customers to be worried about anything as their funds are safe. Report have it that Circle has freeze the USDC inside the wallet that was associated with the exchange hack. Waiting for the exchange to publish the full details of what happened. These are terrible times for crypto investors.

But that's what they are supposed to say... "Funds are safu". Opposed to saying that customers should be worried about their funds.
Even when another exchange hints about it, it could lead to  be a dead sentence. Remember how CZ started bank run from FTX with just one tweet insinuating that everything might not be ok in FTX?

But binance had enough money to survive this. And good thing about centralization is that Tether and Circle just froze nearly $2B in stablecoins because of that hack. If that would be fully decentralized and permissionless money, it could be end of Binance and it would take for ages for crypto community to heal from this.

[FinneysTrueVision]

I did receive an alert this morning about this transaction because I was watching for large transfers involving specific tokens. I thought it was really strange that Binance would be sweeping so many tokens into another address and wondered whether it was a hack or if they were rotating wallets for some reason. I hadn’t noticed that the address was funded by Tornado Cash but that does suggest it was a hack.

A lot of the tokens that were stolen are smaller cap altcoins that they are going to have trouble selling for their full value. They are already starting to sell off some coins through Uniswap in batches and it is crashing their price.

[asriloni]

The total funds moved by hackers are around 5.6b , but 3b is recoverable because it's already frozen by Circle and Tether. Meanwhile, the rest are related to the native and altcoin which don't have frozen function. The binance representative also says that it's all due to the one of their engineer's laptop got compromised, and it's not due to security breach.

Beside that they also say they will recover all of the money. It seems all of big crypto companies are working on solution over this hack.

[$crypto$]

Yes, it is clear that Binance was hacked for a huge amount of $6.3 billion dollars, $3 billion dollars was frozen, Binance also committed they would replace all of it so any user would not bear the loss.

Once I checked on Arkham and indeed the current evaluation of Binance is so huge that they are unlikely to go bankrupt in the present circumstances.

Hackers continue to cross-trade to obfuscate the coins they steal, updates continue to be made by Binance.

[o48o]

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The binance representative also says that it's all due to the one of their engineer's laptop got compromised, and it's not due to security breach.
-cut-

I don't know what they are trying to say, but that's very much a security breach.

It's very common tactic of hackers and robbers to find an opening trough social engineering. They manipulate or exploit people working in the company and those aren't even usually some high level employers, because engineers actually know about security. So how is one of their key engineers who probably had a root access on their laptop not a security weak point?

[Abiky]

But that's what they are supposed to say... "Funds are safu". Opposed to saying that customers should be worried about their funds.
Even when another exchange hints about it, it could lead to  be a dead sentence. Remember how CZ started bank run from FTX with just one tweet insinuating that everything might not be ok in FTX?

But binance had enough money to survive this. And good thing about centralization is that Tether and Circle just froze nearly $2B in stablecoins because of that hack. If that would be fully decentralized and permissionless money, it could be end of Binance and it would take for ages for crypto community to heal from this.

Funds are never "SAFU". Not as long as they're stored on hot wallets. Binance should've relied on multisig and/or cold storage methods to secure customers' crypto funds from harms way. At least, they had a backup plan. It could've been worse, right? Freezing transactions of malicious actors, is the only good thing about centralization. I'm so glad Tether and Circle acted quickly. Otherwise, it would've been utter disaster.

Let this be a lesson to many people, not to keep coins on a centralized exchange. Yet, some people never learn as they do otherwise. Therefore, I would expect history to repeat itself over the long term.

[batang_bitcoin]

Funds are never "SAFU". Not as long as they're stored on hot wallets. Binance should've relied on multisig and/or cold storage methods to secure customers' crypto funds from harms way. At least, they had a backup plan. It could've been worse, right? Freezing transactions of malicious actors, is the only good thing about centralization. I'm so glad Tether and Circle acted quickly. Otherwise, it would've been utter disaster.

Let this be a lesson to many people, not to keep coins on a centralized exchange. Yet, some people never learn as they do otherwise. Therefore, I would expect history to repeat itself over the long term.

If it's not with the stable coin issuers, they will have to bear with larger loss. And even with this incident, no matter how many times we give this reminder to many of them. People who have been keeping their funds on exchanges will never stop doing so, however big or small the amount is. They never learn and they always put that confidence and trust to these exchanges for their names. But if Binance surpasses this incident, we will have to give them the credit for having balls and standing on their responsibility.

[free-bit.co.in]

Let this be a lesson to many people, not to keep coins on a centralized exchange. Yet, some people never learn as they do otherwise. Therefore, I would expect history to repeat itself over the long term.

Then what's your advice for the folks who lost everything keeping their coin on coldcard or ledger?

As for people using bybit, bitget and binance . They may have had their share of scares, but at least they still have an exchange they can turn to for support and compensation if something goes wrong .

Don't get me wrong , I'm not saying everyone should go use CEX. Im just saying we should be fair here, since every option carries risk. There is no such thing as 100% safe in this space .

[o48o]

But that's what they are supposed to say... "Funds are safu". Opposed to saying that customers should be worried about their funds.
Even when another exchange hints about it, it could lead to  be a dead sentence. Remember how CZ started bank run from FTX with just one tweet insinuating that everything might not be ok in FTX?

But binance had enough money to survive this. And good thing about centralization is that Tether and Circle just froze nearly $2B in stablecoins because of that hack. If that would be fully decentralized and permissionless money, it could be end of Binance and it would take for ages for crypto community to heal from this.

Funds are never "SAFU". Not as long as they're stored on hot wallets. Binance should've relied on multisig and/or cold storage methods to secure customers' crypto funds from harms way. At least, they had a backup plan. It could've been worse, right? Freezing transactions of malicious actors, is the only good thing about centralization. I'm so glad Tether and Circle acted quickly. Otherwise, it would've been utter disaster.

Let this be a lesson to many people, not to keep coins on a centralized exchange. Yet, some people never learn as they do otherwise. Therefore, I would expect history to repeat itself over the long term.

I am not sure if this is the lesson they pick from this, as they probably get their money back.

If anything, they will learn that they will learn to trust stablecoins and that they should keep their money in CEXes, when even the biggest hack of all time doesn't hurt them.

Alternatively they should learn to be more tech-savvy, which i don't see that happening. Then there are hacked coldcard hardware wallets and countless of DEX and smart contract hacks, where no one is covering their losses.

[asriloni]

A small update for anyone who has funds on Binance because i'm able to withdrawing my money. If you have not secure yours, then do it asap. I dunno whether they have fully fixed their liquidity problems, but the better to do it to ensure you get your money back instead of getting another problem.

However, it seems binance was selling its Spacex stock to reimburse all of users affected. I think the case is already solved, and hopefully, no more cex hack to come again.

[DanWalker]

A small update for anyone who has funds on Binance because i'm able to withdrawing my money. If you have not secure yours, then do it asap. I dunno whether they have fully fixed their liquidity problems, but the better to do it to ensure you get your money back instead of getting another problem.

However, it seems binance was selling its Spacex stock to reimburse all of users affected. I think the case is already solved, and hopefully, no more cex hack to come again.

From the latest updates, Binance says it has covered about 95% of the lost funds, and withdrawals are being restored in stages.

As for where money is coming from, Binance has reportedly used its corporate reserves along with 7499BTC from the SAFU fund to cover the losses.

Co-CEO Yi He said on X yesterday (Oct 30), that Binance's full year revenue is enough to cover the losses. So there is no need to sell SPCX stake yet, as some earlier speculation suggested.


https://x.com/heyibinance/status/2116101170079076558

[Smack That Ace]

Funds are never "SAFU". Not as long as they're stored on hot wallets. Binance should've relied on multisig and/or cold storage methods to secure customers' crypto funds from harms way. At least, they had a backup plan. It could've been worse, right? Freezing transactions of malicious actors, is the only good thing about centralization. I'm so glad Tether and Circle acted quickly. Otherwise, it would've been utter disaster.

Let this be a lesson to many people, not to keep coins on a centralized exchange. Yet, some people never learn as they do otherwise. Therefore, I would expect history to repeat itself over the long term.

I am not sure if this is the lesson they pick from this, as they probably get their money back.

If anything, they will learn that they will learn to trust stablecoins and that they should keep their money in CEXes, when even the biggest hack of all time doesn't hurt them.

Alternatively they should learn to be more tech-savvy, which i don't see that happening. Then there are hacked coldcard hardware wallets and countless of DEX and smart contract hacks, where no one is covering their losses.

Withdrawals have reopened and it look like no users ended up losing money . So  I doubt many  will  learn anything from  this .

Given what happened and how CEX like Bitget, Bybit, and Binance have handled recent incident, I actually reckon it's the opposite. More people will probably lean toward CEXs and ETFs instead of options like hardware wallets. Cause hw aren't foolproof either, and the buck still stop with user even when the fault lies with the manufacturer or supplier.

In the end, incidents like this could make people trust CEXs even more, rather than push them toward selfcustody like we'd normally expect.