Binance Offers $250000 Bounty For Arrest of Hackers

Binance CEO Zhao Changpeng discusses the challenges exchanges face possible rules and regulations on Jan. 11

Binance CEO Zhao Changpeng discusses the challenges exchanges face possible rules and regulations on Jan. 11

Binance is offering a $250,000 Dollars equivalent bounty to anyone who supplies information that leads to the legal arrest of the hackers involved in the attempted hacking incident on Binance on March 7th, 2018.

Furthermore, considering the fact that all withdrawals were suspended at the time, the hackers' original Viacoins were also withheld, and the CEO reported that they will be donated to charity, as is seen in this statement.

Binance which is one of the biggest crypto exchanges is going on the offensive to prevent hacking after it suffered a scare last week. To widen its effort, it further revealed it allocated the equivalent of $10,000,000 in cryptocurrency reserves for future bounty awards.

"We have also invited other exchanges and crypto businesses to join our initiative", it said.

It appears that over the past two months, hackers had managed to acquire user accounts through phishing attacks (a situation where fake websites are made similar to the real ones and steal account information from legitimate users) and generated trading API keys for all compromised accounts.

At the time of writing, the identity of the hackers remains unknown. This was an attempt to move the BTC from the phished accounts to the 31 accounts.

Eventually, the hackers, now in possession of the stolen BTC, attempted to withdraw it but by then, Binance had suspended withdrawals. "Withdrawal requests were then attempted from these accounts immediately afterwards", Binance explained.

Fortunately, in this incident the hack was unsuccessful and withdrawals were automatically frozen. The sophisticated ploy was uncovered by their "automatic risk management system" before any theft of funds took place.

Fortunately, the cryptocurrency exchange was able to freeze the coins deposited by the bad actors and to refund an equivalent amount in Bitcoins to affected users' accounts. They also selected VIA, a coin with smaller liquidity, to maximize their own gains. These hackers have increased the pressure on the exchanges and even regulators to do something extra to protect investors' funds.

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