Binance Ups Security Following Recent Hacks

Binance Ups Security Following Recent Hacks

As you know Binance joined the long queue of hacked exchanges and even topped its own loss record earlier in May.

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As you know Binance joined the long queue of hacked exchanges and even topped its own loss record earlier in May. Recently, its CEO, Changpeng Zhao, made some comments regarding Binance’s recent misfortunes and its efforts to improve security. The exchange has modified both its 2FA layers and user API.

We are making significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident. We are improving our risk management, user behavior analysis, and KYC procedures. We are working on more innovative ways to fight phishing. We also have a number of additional security measures being implemented not directly visible on the front end,” Zhao said.

Furthermore, Binance will deploy YubiKey security devices in an effort to make withdrawals impossible without hardware verification. Indeed, if that move was made earlier the funds would have never been stolen. Currently, bad actors seem to distribute them across different wallets and public addresses. This is a common tactic used by hackers as it makes tracking harder and less deanonymizing. Nevertheless, Zhao reminded that investigators are closely monitoring those transactions.

Exchanges usually can freeze funds that are known to be stolen from other markets. Binance has also done that on several occasions as it has now. However, it is expected to allow withdrawals and deposits in the coming days.

Tentatively, we are looking to resume withdrawals and deposits early next week. We still have a large number of tasks and tests to do, and we are working around the clock on it,” stated Zhao.

Binance’s in-house token (BNB) did not peak along with other assets this week as it trading volumes also diminished.

Zhao outlined:

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. It already is sort of an alliance. We have some ideas to contribute more on this front after we get over this incident.”

Binance saw some 7000 BTC stolen from its wallets and while there were rumors the exchange will try to reverse the transactions, its CEO ultimately dismissed this opportunity.