The cryptocurrency markets of the world are starting to mature this year. There are still a lot of challenges for those involved however, hacks, for example, are one of the problems still occurring.
It’s estimated that somewhere in the amount of $356 million has been stolen so far this year. The most recent hack occurred at Binance when around 7,000 BTC were stolen.
Theft at Binance caught a lot of attention since it’s the only known breach for the exchange. Everyone thought the exchange was completely protected, the hack showed no one is 100% safe. An important note was that Binance gave refunds to its users, something that doesn’t happen.
The exchange went on with operations as though nothing occurred. Binance’s SAFU or Secure Asset Fund for Users proved effective to repay users in case of a hack.
May 7th the CEO of Binance announced maintenance for the site. It was during the next few hours the theft occurred, at which time hackers stole around $40 million in BTC. Following the hack, Binance suspended all movement, then performed a security review. The company concluded with announcing that all losses would be covered by the SFSU.
Thanks for the support, really appreciate it. But currently no need. We will cover the loss from the #SAFU fund, there is enough. We are hurt, but not broke.
We are working hard to resolve the issue, so that everyone can deposit and withdrawal again. Will take some time. https://t.co/0j4J0fk99W
— CZ Binance (@cz_binance) May 8, 2019
They were very open about the theft, the review and everything that followed. Binance handled the incident better than anyone could have hoped for and with the SFSU, only Binance suffered any losses. It was because of Binance and their transparency they received so much support from the community. Together the process was rather seamless and smooth, with everyone helping the company recover quickly.
Binance was the only exchange to operate with so much transparency. Other exchanges like QuadrigaCX and Cryptopia all but disappeared when they were hacked. Exchange hacks are common, but not the security that Binance offered. No other company has provided so much security, thereby raising the bar for the entire industry.
Cryptocurrency still has a lot of work to go through to make it safe for mainstream adoption. It’s a dangerous industry still, especially for those who don’t know the ins and outs of it. Scams are everywhere, as is hacking and without exchanges like Binance providing quality security many people are afraid to get involved.
Users can now demand that an exchange offers SFSU type insurance for their holdings to protect from theft or losses. It’s because of qualities like which make Binance the largest exchanges in the world. People want to know that their money is in a trusted place where they can rest assured it is protected from hacking.