The space of cryptocurrency is still very young and growing. As a result, it is very prone to various issues and there are many individuals constantly attempting to take advantage of its weaknesses. Over the past years, attacks and hacks have been happening multiple times in the crypto space. Online exchanges and trading platforms have been the most vulnerable and have experienced the most hacks, losses of funds, and privacy breaches. The biggest and most known instance was Mt. Gox in 2011 and the more recent and colossal hack was on exchange Coincheck, where a total of ¥58 billion worth of funds were stolen. Ever since then, investors and actors in the crypto space have been very wary of where their funds are stored, usually opting for one of the most secure solutions: cold storage. However, the bad news keeps coming. Binance, one of the most popular digital currency exchange in the world has announced that it was temporarily shutting down its trading operations, following rumors that the platform had been hacked.
Some Binance customers have been reporting that their account balance had been decreasing and that there existing coins and tokens had been sold and traded to viacoin. This created panic amongst investors and the rumors of a hack started spreading at a fast pace. As we have seen in the past, the virtual currency markets react strongly to news and therefore most major coins took a downturn after these reports started circulating.
Binance quickly reacted and attempted to reassure their customers, claiming that funds were still intact and that zero accounts have been breached. The platform blocked withdrawals as a precaution measure while investigating the cause of these issues. An initial statement from Binance claimed “There is no evidence of the Binance platform being compromised”. Later, the CEO of Binance tweeted “All funds are safe”, confirming that the platform hadn’t been the victim of an attack or hack. He also added “Binance has reversed all irregular trades. All deposit, trading and withdrawal are resumed”. The platform later reopened all its activities and customers found their accounts back to normal.
This story truly ended well for the digital currency exchange and its investors, but it is usually not the case. Will this push investors to be more careful with their funds? Will this prompt exchanges to reinforce their security to protect users from attacks? We strongly hope so.
TLDR: Binance, one of the most popular cryptocurrency exchanges has experienced some turmoil in the past few days as rumors spread that it had been hacked. In the end, all funds were safe and nothing was stolen.