Binance Keeps Their Crown 👑 In Response To Latest Attack
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This story centers around Viacoin:
https://coinmarketcap.com/currencies/viacoin/
On Wednesday afternoon Binance detected very unusual trading activity on their exchange in the form of a major price pump.
And when I say a major price pump, here is the chart:
https://twitter.com/CryptoTutor/status/971412221820620800
Price moves around a bit, everything looks normal and then boom, a green candle so big, it resizes the chart so you can’t even see any others.
Binance responded to this by halting withdrawals to prevent any bad actors taking money out.
According to an article from cryptovest…
https://cryptovest.com/news/binance-claims-hackers-lost-money-in-stealing-attempt-ont-trading-to-begin-soon/
The attackers had spent a couple of months tricking Binance users out of their login details.
Once the attackers had built up a big enough bank of users, they set their own Viacoin to sell at high prices, then sold all the altcoins those users held into Bitcoin, then did a huge buy on Viacoin.
Thus the attackers ended up with a whole bunch of Bitcoin.
They tried to withdraw it, but Binance had already closed the door. Busted.
https://twitter.com/cz_binance/status/971520303812698112
Binance CEO then Tweets out saying they had reversed all the trades by the attackers, re-enabled withdrawals and that they would be donating the funds that belonged to the hackers to charity.
So when I run those sponsor slots where I invite you to sign up to Binance through my referral link, and people complain about how high the withdrawal fees are… I’d like to now point out that this is what you get for your money.
https://www.binance.com/fees.html
In the free market, you get what you pay for. A company can charge more than their service is worth, but not for long.
Assuming there’s no monopoly, if a company remains the leader in the market, despite having high prices, you know they are putting those funds to good use.
I can guarantee you that the moment that cheap exchange you use gets hacked, those same people would be straight on Reddit bitching about how the exchange should have invested more money in security.
Money the exchange did not have because of their low prices.
I’ll end with this nice meme that someone posted on Reddit:
https://www.reddit.com/r/CryptoCurrency/comments/82vk3r/two_very_different_methods_of_handling_a_hack_of/
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I like binance .. it proves everyday they are on top of exchanges. I ve invested in its BNB since it was $ 2.5 . However I increased the position in a decent amount when it was at $20 then it dropped and still around $ 10 now. Anybody knows price expectations to BNB?
All I know is that they plan to continue to burn BNB so holding long term will increase price assuming Binance stays dominant. Predicting price is not my game.
Must hold .. don’t know when next burning though 🙃
Disclaimer: I am just a bot trying to be helpful.
People that got phished still may have lost money but it is not the fault of Binance. I would like to see them implement email confirmation on API activation though. Everyone should log in and make sure no API is active on their account that they did not specify.
Creativity at its best
It was definitely great to see Binance act so swiftly and transparently when the news came out.
PS. Great post :)!
The more I hear about how Binance handles things, the more I want to register with them. If only they could reduce those withdrawal fees!
People are so quick to spread FUD, they wernt even hacked lol Third partys were "hacked" through API's
And you can actually withdraw from Binance without, actually logging into your account.
So there was actually no risk on Binance's side at any point.
I was already fond of Binance as an exchange, but they way they dealt with this has increased my confidence in them even more. No begging for help from the users; instead, they put stops in place to prevent withdrawals. Perfect. Then spent the 'hackers' lost cash on charity. Perfect.
Hi Chris Coney.
I wasrecommended to you by @tojukaka. He says you're awesome. I hope to see more of your awesome posts.
Its nice to see that everything worked out, but to me this raises a question that I haven't seen anyone else raise.
So Binance "Caught" it because of irregular activity. Does this mean that if the coin i'm heavily invested starts to take off (legitimately) Can and might an exchange just halt everything? I'm sure not likely but if this theoretically possible? Seems a little scary that they have that kind of control.