- Hackers stole 7000 Bitcoin last week
- The exchange said it will improve KYC and user analysis
- Binance is collaborating with other exchanges to retrieve stolen funds
Binance CEO Changpeng Zhao (CZ) has announced the resumption of deposit and withdrawal services following a recent hacking incident. Hackers stole $41 million worth of Bitcoin using API keys and two-factor authentication last week.
Resumption of Deposits and Withdrawals
The Binance hacking incident created a great buzz besides spreading awareness about the bitcoin blockchain because of CZ’s comments on the recovery of the lost funds. However, the exchange’s CEO in the latest update on the company’s blog has announced plans for the resumption of deposits and withdrawals beginning Tuesday, May 14, 2019. The announcement on the blog stated:
“We aim to fully resume deposits and withdrawals on Tuesday. The time will be communicated at a later stage, depending on how the testing goes. This upgrade will require a trading halt. We will update you again tomorrow.”
Kept the Community Updated
The Malta-based Binance cryptocurrency exchange was hacked on May 07, 2019, which resulted in hackers getting away with 7000 BTC worth $41 million, and user data. The hackers quickly moved the stolen bitcoin, causing some to speculate that they are preparing to launder the money through multiple exchanges.
Binance CEO, CZ, has been transparent about the measures that were taken since the hack and has kept the community updated regarding the same. All withdrawal and deposit actions are marked “Suspend” and cannot be carried out on the exchange. However, at least one user has said on social media that they could send deposits to the address through previously identified addresses.
CZ explained that the Binance team worked throughout the weekend saying that they had implemented several upgrades to the exchange’s security system. He stated:
“In the past few days, we have made some significant overhauls to our system, with a large number of advanced security features added and/or completely re-architected. We will share details on some of the changes later.”
User Behavior Analysis and KYC Procedures
Some changes that could have been done may include API, 2FA, and withdrawal validation updates which gave the hackers a weak point to exploit, and 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 and adding hardware device support and other devices to the list of options on the exchange. CZ said earlier that the company was collaborating with experts to track the stolen funds and look for a possibility of retrieval adding that the incident has only placed the company on its toes but they have no reason to be downcast.
