Crypto Exchanges

Binance Offers a $250K Bounty to Find Failed Hackers

Binance Offers a $250K Bounty to Find Failed Hackers

On the 7th of March, the world’s second largest crypto exchange, Binance, was faced with a large-scale hacking attempt which eventually turned out to be unsuccessful.

Binance is one of the most popular cryptocurrency exchanges currently.

According to official reports, the attack was well orchestrated and took place over a period of just two minutes. However, after the dust had settled, Binance released a statement claiming that all user funds were safe and in order.

The attack is supposed to have been a culmination of intense phishing activity that had been carried out over a period of a few months.

Suspicions started to grown initially when 31 accounts registered with Binance started to systematically buy Viacoin, a low-value cryptocurrency,  through the use of Bitcoin.

This resulted in the price of this relatively unknown crypto to increase dramatically within the space of a few days. The buyers then proceeded to sell the tokens but were stopped in their tracks owing to Binance’s automated trade-block mechanism which had been installed to stop such trading activities.

While the hackers may not have gotten their hands on any money, but the effect of such an attack has created quite a ripple amongst members of the crypto community at large. Since Binance volume is in excess $1 billion USD daily, many casual investors are now concerned about the safety and efficacy of digital currencies in general.

The Response

Since this incident, Binance has gone on the offensive and has immediately issued a $250,000 bounty for anyone who might have relevant information pertaining to the identity of the culprits.

The statement which was released via online publisher Medium reads:

“The first person to supply substantial information and evidence that leads to the legal arrest of the hackers, in any jurisdiction, will receive the equivalent of $250,000 USD in BNB. The exchange rate will be determined at the time of transfer.If multiple sources/segments of data are used to lead to the final legal arrests, the bounty may be split between sources.”

Additionally,  Binance has also gone on to set up a reserve bounty fund of $10 million USD in case other similar hacking attempts are faced by them in the future.

Looking Ahead

With crypto having firmly established its position within various global financial markets, mammoth exchanges like Binance are now inviting other companies to join hands with them in an attempt to ward off cyber-criminals in a collective and organized manner.

These attempts are being viewed by many as steps in the right direction. Investor confidence is a key driving factor within cryptocurrency, and exchanges that take proactive measures to ward off such unwanted illegal activities will be welcomed with open arms.

Cover Ilya Pavlov on Unsplash

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Did you like this article? Join us.

Get blockchain news and crypto insights.

Join Us on Telegram

Shiraz is a cryptocurrency journalist and analyst living in Melbourne, Australia. When not exploring the emerging blockchain ecosystem, he loves to play the blues and dabble in the world of meditation.

View author profile