Binance Hack- Exchange fighting back

Binance one of the biggest cryptocurrency exchange declared a “large scale security breach” on May 7, 2019. The announcement was made on the official Binance website by Changpeng Zhao (CZ), founder and CEO of Binance. The announcement states that,

“The hackers were able to withdraw 7000 BTC in this one transaction: https://www.blockchain.com/btc/tx/e8b406091959700dbffcff30a60b190133721e5c39e89bb5fe23c5a554ab05ea
The above transaction is the only affected transaction. It impacted our BTC hot wallet only (which contained about 2% of our total BTC holdings). All of our other wallets are secure and unharmed.”

The CEO has assured that once the system identified the breach all the withdrawals were stopped. He has promised that binance will use its SAFU (Secure Asset Fund for Users) Fund to cover the hacking incident and keep the investments safe.

Binance announced about SAFU on July 3, 2018. The exchange published a statement saying,

“To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. This fund will be stored in a separate cold wallet.”

CZ has appealed the investors, to understand the situation of difficulty as updating the security of the cryptomarket is very crucial. It will take a weeks time for the process. All the transactions will be suspended in this period.
The new update was posted by CZ on May 10, 2019. Through the post, Binance has stated that the team is working to revamp the security measures, practices and procedures. They are working on improving risk management, KYC procedures and user behaviour analysis and is trying to find innovative measures to fight the phishing. The announcement states that the company has taken the assistance of other experts and the blockchain companies to find the stolen Bitcoin.
The statement reflects the company’s patient and hard work. The commitment towards the community is stated as follows –

“Mentally, the Binance team is not sad or depressed; on the contrary, we are in fighting mode. This event has further united an already tight team. We have received tremendous support from our community and we are humbled by your support. We will continue to fight for all of us, the community, against hackers and people with ill intentions. I believe this incident while damaging us now, will actually make us far stronger and more secure in the long run.”

The value of the theft was worth $40 million. It is important to understand how this theft has affected BNB prices. The price of BNB had dived down after the breach. But from May 11, 2019, the price has started rising. Currently, the BNB is at $21.54. Despite all odds, the 24-hour growth is around 11.40 percent. In terms of BTC, the BNB is valued at 0.00311 with price growth of 3.15 percent.

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