Binance exchange suffers major security breach, loses millions
One of the world’s largest crypto exchanges is attacked for the second time in less than a year
Being attacked by hackers once is embarrassing enough; being attacked twice in less than a year is enough to make someone want to bury their head in the sand. Or, at least it should. The Binance cryptocurrency exchange has now allegedly suffered its second attack and, very similar to what was seen in the hack last June, lost $40.5 million worth of Bitcoin Core (BTC).
Some believe that the hack may not necessarily have taken place. Social media users have pointed out that the attack occurred on the heels of the scandal that saw Bitfinex and Tether trying to cover up losses worth $850 million. After that scandal was first announced, Binance reportedly started moving funds involving Tether, but not all of the money ended up where it was supposedly sent.
Chico Crypto pointed out on Twitter, “Doesn’t this ‘hack’ have some uncanny resemblances to the last time it happened?” Last July, 7,000 BTC were moved out of a Binance hot wallet, after which Binance reportedly had to undergo “unplanned maintenance.”
In this attack, 7,000 BTC was suddenly funneled out of Binance’s holdings and the exchange subsequently reported that it was going to undergo unscheduled maintenance. Changpeng Zhao, Binance’s CEO, also offered to “roll back” the network to recover the losses. This ultimately means reestablishing the BTC blockchain and nullifying the transactions. However, this response is indicative of the lack of seriousness needed in the crypto space, as it completely disintegrates the immutability of the blockchain.
The ordeal involving Bitfinex and Tether is not over. Now that Binance is added in, there are even more questions than before and the crypto community deserves answers to those questions.