Binance Hack - Change Your Views On Bitcoin and Rest of Crypto?

[Ayers]

Binance is not the first exchange to get hacked, and it won't be the last exchange that will be hacked.

OP's no newbie. his profile shows he's been on the forum since 2017, which means he's lived through the FTX collapse and knows the Mt.gox story too. kinda surprised that someone who's been around this long would ask such a weird question tbh.

After all, what matters most is that the exchanges that got hacked keep funds on SAFU.

In 2018, Binance created an emergency fund that allocates 10% of trading fees to the fund to protect users if there is a hack in the future.

heads up, safu is only an idea and a voluntary fund binance came up with on its own, not an insurance policy with any legal backing.

that means whether users get made whole after a hack is entirely up to them, whether they feel like paying out or not.
so don't be too quick to assume that an exchange with a safu fund is automatically a safer place to keep your coins.

[PVequalNRT]

Binance is not the first exchange to get hacked, and it won't be the last exchange that will be hacked.

After all, what matters most is that the exchanges that got hacked keep funds on SAFU.

In 2018, Binance created an emergency fund that allocates 10% of trading fees to the fund to protect users if there is a hack in the future.

They were lucky to change the SAFU to Bitcoin, it was in stablecoin since 2018 until this year, they used it buy Bitcoin at $68k average price. If they have done so before the bull run, the shortage they had when they move the SAFU to hot wallet, they wouldn't have worry about it. They sort out money from other place to balance the money stolen by the hackers. They have to look for another money to do another insurance for the customers.

The exchanges need to find a way to stop this stealing of money. There are online banks that been in existence for years and they have never been hack before and they handle billions of transactions but the centralized exchanges are getting hit all the time.

[BitBakerr1]

Was it Binance that got hacked, or Bitcoin? Hasn't any exchange been hacked before?

Or is this the first exchange hack you've ever encountered in your life?

You cannot label decentralized Bitcoin protocol a scam based on security failure at centralized exchange. This incident serves as reminder that trusting Bitcoin is not same as trusting any exchange.

Keeping your Bitcoin in your own custody is actual financial sovereignty.

Sometimes I really don’t understand how people think, some people are sounding as if this is the first time they are hacking exchange, this are one of the reasons we talk against keeping your bitcoin in an exchange because it’s not safe.

Very correct, trusting bitcoin for safety is not the same as trusting an exchange for safety, exchange can always get hack so if you are trusting an exchange to keep your bitcoin safe then you are about to get destroyed.
Exchange is for traders, an as a trader after trading transfer your coin to your own custody, those that have chosen to keep their coin on exchange for long time will face the consequences.

Your own custody will give you the freedom and security you wish for.

[oll]

Binance Hack  - Change Your Views On Bitcoin and Rest of Crypto?

With the current situation Binance has this change your views on all of crypto?
Do feel even the creation of Bitcoin may have been created by radical people who had intention to scam and cause harm to everyone?
Or do you feel there is still something sensible in the crypto space that could be used for "good" purposes? Such as BTC being used as a money since it has a limited supply?
As there seems to be more and more evidence that people who we thought were credible in this space have proven to be deviants as well.
Explain why or why not?

My views on the world of crypto and Bitcoin haven't changed at all. Yes, we were afraid when we saw chips in hardware wallets, because that was the best storage method. But hacks of exchanges like Binance were never a surprise, because that's CEX. Only a fool keeps crypto and Bitcoin there for long periods of time.
One of the rules of foreign exchange purity is that you can only deposit crypto on the exchange if the amount is small and will be exchanged quickly. After that, you must withdraw the crypto or Bitcoin immediately to minimize risks. That's why I do the same, keeping my Bitcoin or crypto on CEX for only about three hours, after which my deposit there becomes empty again.

[coinlary]

'Oct 2026 6.3 billion
Oct 2022 570 million
May 2019  19 million

The numbers kept climbing.

The numbers are a little misleading. The $570 million hack from four years ago was on Binance chain bridge and not on the Binance exchange itself. Its the 2019 and 2026 ones that happened directly on binance. And the attackers only made away with an estimated $100m from the 2022 BNB Chain bridge hack.

Does it really matter, he said  'Binance'. Who founded Trust wallet ? Who founded BSC? So who will you pin the blame on? The team own by Binance or the community after the 7months of separation  (the BNB Chain )?

BTW,  I checked the current  list of the va validators and couldn't find a specific name pointing to them but I believe they should be, probably registered under a different, that  doesn't  really matter here anyway. Just saying.

Quick Question: Does anyone feel that there is any connection between this Binance hack and just the last few weeks where there were reports around Europe about potential hacks using AI?

Sources?

[Sonia_123]

The inability of Binance not being able to protect their firm and it's customers does not mean that Bitcoin can't be protected or is easily being exposed by scammers, you can see the necessary measures Theymos put in place to protect the forum due to the ongoing hacking of some various big firms like Ledger and others, if the leader of the forum can be very fast and active to protect it's users, you will understand the measures at which the entire group of the creation of bitcoin will be putting to protect Bitcoin from having any issues like what you are saying.

It is the lack of proper insecurity that has exposed Binance and others to being hacked, Bitcoin has not been hacked before, but Binance has being involved three time with the numbers increasing often, exchanges are vulnerable to hackers not Bitcoin because it has a very strong security measures .

[mirakal]

Its not that hacks are only happening now, they have been happening for years but maybe its only now that we have been personally affected because some of us here might have lost their funds too from those past scams.

And speaking of bitcoin views, there is only one rule, not your keys, not your coins. If you continue to trust those centralized exchanges to save up your coins, you cannot avoid the high possibility of losing again your coins. That is one risk that we can't stop from happening when we decide to entrust our coins to any third party or middlemen.

[Bitcoin.com97]

Nothing has changed about how I see Bitcoin. The only thing that’s changed is how I think about keeping my BTC safe in my hardware wallet. I mean the recent incidents have made it clear that even hardware wallets aren’t as safe as we thought. Anyway, I’ll do my best and see what happens.

I just understand one thing ,in life so many things are bound to happen,and what happened recently is just one of it , because no one saw it coming , I won't say it's carelessness, binance is the biggest exchange that people never thought such a thing could happen to them ,but telling people to change their view concerning on Bitcoin and rest on crypto is not the best, these things has been happening and it will still continue, hackers are working so hard ,it's just for we to be at alert and know how we handle our funds since we are not safe in the hands of hackers .

[Peanutswar]

Still the same, this is the reason why we keep saying that do not store your bitcoins in the exchange because this are not your bitcoin it's the exchange bitcoin so better to transfer your bitcoin into your wallet and not in exchange, just laziness can create a panic imagine tons of binance user are previous having a tension they can't withdraw their funds because its a must to freeze the withdrawal to make sure the binance can conduct a security checking to avoid additional damages. Tons of traders pull out their funds and sell just to make safe but good thing binance take an action and accountability on it but this won't change my mind that I will not store a large amount in exchange and keep still using bitcoin into my wallet.