{"id":104522,"date":"2019-05-10T05:14:54","date_gmt":"2019-05-10T12:14:54","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=104522"},"modified":"2020-03-24T07:01:23","modified_gmt":"2020-03-24T07:01:23","slug":"security-update-from-binance-ceo-following-40-million-exchange-hack","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/security-update-from-binance-ceo-following-40-million-exchange-hack\/","title":{"rendered":"Security update from Binance CEO, following $40 million exchange hack"},"content":{"rendered":"

Changpeng Zhao<\/a> (\u201cCZ\u201d), the CEO of Binance<\/span><\/a>, the world\u2019s largest crypto exchange in terms of adjusted trading volume, has published a blog post in which he apologized for previously suggesting a chain reorg of the Bitcoin (BTC)<\/span><\/a> blockchain. <\/span><\/p>\n

Following a large-scale security breach<\/span><\/a> of Binance on May 7th, 2019, which resulted in a loss of over $40 million in Bitcoin, CZ acknowledged that the \u201csituation is tough\u201d for the crypto community. He also noted that Binance\u2019s management strives to \u201cmaintain the highest degree of transparency.\u201d<\/span><\/p>\n

Hackers Watching Every Move We Make<\/span><\/h2>\n

However, CZ pointed out that the hackers are most likely keeping a close eye on everything the exchange\u2019s management is saying and doing, including \u201creading every word\u201d posted by the crypto firm and watching every AMA session hosted by Binance.<\/span><\/p>\n

\"World\u2019s<\/a>
Related: World\u2019s Biggest Crypto Exchange Binance Reports 7,000 Bitcoin Hack<\/a><\/figcaption><\/figure>\n

According to CZ, \u201csharing too many security details\u201d could potentially weaken the exchange\u2019s security response strategy. He explained that Binance\u2019s developers are currently revamping some of the exchange\u2019s standard \u201csecurity measures, procedures, and practices.\u201d <\/span><\/p>\n

The Binance founder also clarified that the exchange\u2019s management intends to resume deposits and withdrawals \u201cas soon as possible\u201d and that several important changes to the platform\u2019s operating procedures will be completed \u201cwithin the window of this week.\u201d Additionally, Binance\u2019s team will work on making various other changes to the crypto trading platform\u2019s standard operating procedures in the coming weeks. <\/span><\/p>\n

Working To Improve Risk Management, Performing User Behavior Analysis<\/span><\/h2>\n

In the security update blog, CZ stated: <\/span><\/p>\n

\n

\u201cWe are making significant changes to the API, [two-factor authentication] 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 [know-your-customer] KYC procedures.\u201d <\/span><\/p>\n<\/blockquote>\n

CZ further noted that Binance\u2019s team is working on \u201cmore innovative ways to fight phishing\u201d and it is also implementing several new security measures. Some of these changes, CZ said, will not be noticeable to users on the front end. <\/span><\/p>\n

Adding Support For Security Hardware Devices<\/span><\/h2>\n

In the coming weeks, Binance\u2019s team will be adding support for security-related hardware devices, including YubiKey<\/span><\/a>, a hardware authentication device that \u201csupports one-time passwords, public-key encryption and authentication, and the Universal 2nd Factor and FIDO2 protocols developed by the FIDO Alliance.\u201d <\/span><\/p>\n

Notably, Binance will conduct an event \u201cvery soon\u201d in which it will give away 1,000 YubiKeys as soon as the feature is integrated on the crypto trading platform.<\/span><\/p>\n

Working With A Dozen Industry-Leading Security Experts<\/span><\/h2>\n

Assessing the damages from the hack, CZ wrote that \u201cimpact-wise, the single BTC transaction of about 7000 BTC is the only transaction in which funds were stolen, and it\u2019s quite simple to verify this on the blockchain.\u201d <\/span><\/p>\n

\"\"<\/a>
Related:\u00a0Binance faces criticism for considering rollback of the Bitcoin blockchain<\/a><\/figcaption><\/figure>\n

CZ added that there are many community experts who are closely monitoring every Binance wallet. He also mentioned that Binance\u2019s security team is investigating \u201call other areas of the system,\u201d in order to ensure that all vulnerabilities on the exchange<\/span> platform are identified and addressed.<\/span><\/p>\n

Per the Binance CEO, the exchange is presently working with \u201ca dozen or so industry-leading security expert teams\u201d to help improve the trading platform\u2019s security. He also revealed that <\/span>blockchain analytics firms are \u201cactively helping\u201d the exchange operator in tracking down the stolen cryptocurrency. <\/span><\/p>\n

This Incident Will Make Us \u201cStronger In The Long Run\u201d<\/span><\/h2>\n

After suffering one of the most damaging security breaches of this year, CZ said: <\/span><\/p>\n

\n

\u201cMentally, 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 \u2026 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.\u201d<\/span><\/p>\n<\/blockquote>\n

The Binance CEO added: <\/span><\/p>\n

\n

\u201cGiven how much I talk, I sometimes say the wrong stuff, dirty words like \u201creorg\u201d, for which I apologize. It is my strong view that our constant and transparent communication is what sets us apart from the \u2018old way of doing things,\u2019 even and especially in tough times.\u201d<\/span><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Changpeng Zhao (\u201cCZ\u201d), the CEO of Binance, the world\u2019s largest crypto exchange in terms of adjusted trading volume, has published a blog post in which he apologized for previously suggesting a chain reorg of the Bitcoin (BTC) blockchain. Following a large-scale security breach of Binance on May 7th, 2019, which resulted in a loss of […]<\/p>\n","protected":false},"author":67,"featured_media":104527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,16041,60209],"tags":[],"post_folder":[],"acf":[],"yoast_head":"\nSecurity update from Binance CEO, following $40 million exchange hack<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/security-update-from-binance-ceo-following-40-million-exchange-hack\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Security update from Binance CEO, following $40 million exchange hack\" \/>\n<meta property=\"og:description\" content=\"Changpeng Zhao (\u201cCZ\u201d), the CEO of Binance, the world\u2019s largest crypto exchange in terms of adjusted trading volume, has published a blog post in which he apologized for previously suggesting a chain reorg of the Bitcoin (BTC) blockchain. 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