On 7th March, Binance cryptocurrency exchange suffered a blow due to a notable hacking attempt, and is now offering a $250,000 bounty to anyone who will offer information that will lead to the arrest of the masterminds behind this attempt.
Binance Suffers a Blow to its Monumental Growth
Binance made this announcement on Sunday as one of their efforts to catch to the real culprits much more quickly. Binance has steadily grown to become one of the world’s largest cryptocurrency exchanges and the security breach that led to the incident last week was a dent in its effort to offer a secure platform for cryptocurrency trading. The hacking attempt involved registered API keys and eventually led to irregular trading activity and unauthorized trades.
Are our Funds Safe?
Immediately after the incident, Changpend Zhao, the Chief Executive at Binance, was quick to assure users that the irregular trades had been streamlined and that all user funds were in safe custody. This is the latest large-scale effort by hackers to infiltrate cryptocurrency exchanges, and Binance is looking to get to the bottom of the matter by retaliating against the hackers.
In one of its statements, Binance noted:
The first person to supply substantial information and evidence that leads to the legal arrest of the hackers, in any jurisdiction, will receive the equivalent of $250,000 USD in BNB. The exchange rate will be determined at time of transfer.
$10 Million Now Reserved
In its efforts to ensure that such an incident does happen or if it does is thwarted much easily, Binance is reserving an equivalent of $10 million that will go into future bounty rewards against any attempted hacking activity that may target the exchange.
Together as One
This is not, however, Binance’s war to fight alone. As such, it is extending their call to other exchanges to join with them to help secure the industry against hackers, who seem to able to come up with new ways to find a way in on an almost daily basis. They realize the gravity of the matter and thus see the need for all stakeholders to come together in order to fight off this vice in unison.
The phishers were well organized. They were patient enough to not take any immediate action, and waited for the most opportune moment to act.
What do you think about Binance’s decision to offer a reward to whoever provides vital information for the arrest of the hackers? How safe do you think the industry is, considering the risks posed by such hackers? Let us know your views in the comments section below.