Hacking Challenge Only Proves Bitcoin Resilience
With Blockchain Week kicking off in NYC, cryptocurrency dealer Binance is certainly busy. Binance has been recently hacked, losing 7000 Bitcoins--or $40 million--to those hackers. Kitco discussed the security breach and what the theft meant to the crypto firm, while BTC is currently trying to get back on its feet, with values reaching up as far as $7,000 this weekend.
As it goes, Binance has been designated one of the world's biggest crypto exchanges. Tuesday's hacking also gave it the unenviable title of 'site of one of the major crypto thefts.' During that theft, the hackers stole as much as the aforementioned amount, but also made off with 'two-factor authentication codes' as well as API tokens, making it also an identity heist.
The information could be used to hold people ransom or, at least, give them something to think about. Hacking and theft have been a problem that's been hounding cryptocurrency for the longest time. Previously, hackers have made off with $356 million collectively, from BTC collected in infrastructure and exchanges during the first few months of the year alone.
Binance didn't mince words when asked about the theft. Its CEO, Zhao Changpeng, said that the hackers used a lot of techniques associated with hacking, such as phishing and viruses--the usual suspects in data thefts. The hackers seemed to have both the tools and patience at their disposal as they studied the best way to make off with the money, Wired reported, and the transaction they used also passed stringent security checks.
However, with these hackings happening more and more as cryptocurrency is trying to become a 'global' digital currency, security measures are being re-reviewed. Daniel Tanner, Platon Finance CEO, said that the latest incidence of hacking and BTC theft wasn't going unnoticed and that globally, security agencies related to cybersecurity have taken notice.
With the popularity hounding cryptocurrency, many believe that the latest incident is not the last to occur. However, in a review of 'what went wrong,' Tanner said that a lone method couldn't be pinpointed. The data hackers have approached the process at a different angle, dispensing any theories that these hackers are 'traditional.'
The CEO explained that they treated each hacking incident as an opportunity to learn and evolve as the criminals have evolved. This is also according to Ernst and Youngs' former crypto leader Angus Champion de Crespigny, who said that financial institutions had very strict controls because of the many risks they face, and that included this incident.