Binance Details Security Incident in New Update

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Recently, Binance suffered a hack with 7000 BTC being stolen from its hot wallets. In a new statement, the exchange outlined the security changes it has instituted which will hopefully prevent this from occurring again in the future. 

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The recent Binance hack has cast doubt over the leading cryptocurrency exchange. Oftentimes synonymous with the meme ‘Funds are SAFU,’ it was an ongoing joke that Binance was impeccably secure.

That bubble has burst with the news that 7000 BTC was lifted from the exchange’s hot wallet, much to the dismay of many Binance fans.

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The fact that the leading cryptocurrency exchange was able to have its systems breached is a cause for worry. It underscores the fact that every centralized exchange is ultimately at risk and users should always store their own cryptocurrencies as single best way to protect themselves.

However, according to a recent Binance post on the security breach, it’s not all grim news. The exchange said that it has made ‘significant changes’ to its API, 2FA, and withdrawal validation process. These were all areas exploited in the attack.

Risk management, user behavior analysis, and KYC procedures are also areas Binance has said they are beefing up in light of the breach. Backend security measures are being implemented as well. Additionally, the exchange will be adding hardware device support sometime in the near future.

In terms of impact, the exchange has said that the hack was marginal. All the stolen funds were made in a single transaction of 7000 BTC. It is working with ‘dozens or so industry-leading security expert teams’ to retrieve these funds. Luckily, Binance’s own ‘SAFU fund’ was able to reimburse these stolen funds completely and there have been no losses for users.

The Binance team is not ‘sad or depressed,’ the update reads. Instead, they are in ‘fighting mode.’ The exchange believes that it will come out of this stronger, but we should take this all as a warning — don’t store your coins on exchanges.

Do you believe Binance is still safe? Let us know your thoughts in the comments below.  

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Raised in the U.S, Lucian graduated with a BA in economic history. An accomplished freelance journalist, he specializes in writing about the cryptocurrency space and the digital '4th industrial revolution' we find ourselves in.

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