Binance Bolsters Security Measures Following $40 Million Bitcoin Hack
Binance CEO Chanpeng Zhao wrote in a blog, May 10, 2019, that they’re making significant changes to their security methods in the wake of the recent hack.
Strengthening Defenses and Tracking Hackers
On May 7, 2019, the largest cryptocurrency exchange Binance was hacked and a hefty amount of $40 million was stolen from its hot wallet. The company had announced that the hackers were able to obtain a large number of API keys and 2FA codes by using phishing and other unidentified techniques.
Zhao wrote that they were significantly revamping their security measures, procedures and practices to make their defenses strong in those areas where they fell weak, including 2FA, API, and withdrawal validation process. These changes are expected to be successfully implemented by the coming week. They also soon plan to roll out hardware-two-factor-authentication keys to log in to the exchange. He promised a give away of 1,000 YubiKeys once the feature went live.
He assured that deposits and withdrawals that were frozen after detecting the hack will “soon” be resumed. However, no specific date was mentioned. Earlier, another blog on Binance mentioned that deposits and withdrawals will be frozen until the “next week or so.” They were working to ensure utmost security before turning things back on, “especially the deposit and withdrawal part.”
During his live “Ask Me Anything” session, he appreciated the support that the exchanges and people in the crypto community such as Justin Sun, Coinbase and QKC had offered. Giving a little sneak peek into their efforts against the hackers, Zhao said that they were working with a “dozen or so” industry experts to improve their security, track the hackers, and freeze the stolen funds.
Zhao also addressed his decision to consider a re-org to reverse the hack for bringing back the stolen fund and apologized to the community for that.
McAfee Lends a Helping Hand
Binance might be working with McAfee to tighten its security measures although no official announcements were made regarding this. On the day after the Binance hack, John McAfee took to Twitter to lend a helping hand and wrote, “if I can help at all please let me know. I’ve been doing this for 51 years. I am at your service.”
To this, Zhao replied: