Nearly two days after the shocking news of cryptocurrency exchange Binance getting hacked and 7000 bitcoin reported missing, the Chief Executive Officer (CEO) of the exchange, Changpeng Zhao reached out to the community to apprise them of the new measures introduced.
For those who are unaware, an announcement came from the company’s official Twitter handle, at 5 am IST. In the announcement, the company said that it had detected a large scale security breach in which user API keys, 2FA codes and some other info was stolen. The hackers were also able to withdraw 7000 BTC (worth $40 million) in a single transaction. The blockchain address of transaction was also provided with the announcement, and you can see its details here.
In a heartfelt letter, CZ said, “We are making significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident. We are improving our risk management, user behaviour analysis, and KYC procedures. We are working on more innovative ways to fight phishing. We also have a number of additional security measures being implemented that are not directly visible on the front-end. We will be adding Universal 2nd Factor (U2F) support, such as YubiKey and other devices, very soon. We will host an event to give away 1,000 YubiKeys as soon as that feature is implemented.”
He further stated that Binance is working with a dozen or so industry leading security teams to help them improve their security as well as track down the hackers. Many security and blockchain analytics firms are actively helping the exchange track the stolen funds. He added, “We are also working closely with many exchanges and other services to ensure stolen funds are frozen if received. It already is sort of an alliance. We have some ideas to contribute more on this front after we get over this incident.” He also talked about his idea to reorg and then decide against it.
CZ said that Binance is planning to resume withdrawals and deposits next week.
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