Update On Binance Security Breach: Deposits and Withdrawals to Resume Soon

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The Founder and CEO of Binance Changpeng Zhao has spoken up concerning the recent hack that led to the loss of 7,000 BTC (over $40 million). In a post on the company’s official blog today, CZ said the exchange is working round the clock to ensure normal deposits and withdrawals are restored. He said:

“Rest assured, our team is making progress. We are taking this opportunity to significantly revamp some of our security measures, procedures, and practices. With the goal of resuming deposits and withdrawals as soon as possible, some of the changes will be done within the window of this week, and many further changes will be added afterward.”

Some of the changes will include API, 2FA, and withdrawal validation updates which gave the hackers a weak point to exploit, as well as risk management. User behavior analysis and KYC procedures are other areas that will get attention in order to improve the ability to detect irregular activities on the exchange as well as adding hardware device support such as YubiKey and other devices to the list of options on the exchange.

On the stolen funds, CZ said the single 7,000 BTC transaction was the only one that funds were stolen in and the company has collaborated with experts to track the funds and if possible retrieve it. He also added that the incident has only placed the company on its toes but they have no reason to be downcast.

“There are many community experts watching every Binance wallet. We are still investigating all other areas of the system to ensure no stone is left unturned. Furthermore, we are working with a dozen or so industry-leading security expert teams to help improve our security as well as track down the hackers. Many security and blockchain analytics firms are actively helping us track the stolen funds.”

“We are also working closely with many exchanges and other service providers to freeze the stolen funds,” he added.

The largest cryptocurrency exchange by trading volume was hacked as announced by the company on Tuesday. The hack led to the loss of 7,000 BTC, equivalent to the sum of $41 million.

While this has created panic among investors, the Binance team has assured users that it will revamp its security architecture to ensure such does not happen again. Interestingly, CZ apologized for his “reorg” statement and added that the exchange is considering the possibility of resuming deposits and withdrawals by next week.

Source: ZyCrypto

I think this is good news for everyone, traders and investors alike.