Binance to Suffer Hacker Attack

Over $40M worth Bitcoins were stolen, exchange states it will use the SAFU fund to cover the incident and no user funds will be affected
08 May 2019   603

Binance cryptocurrency exchange reported a loss of 7000 BTC ($ 40.5 million) due to a hacker attack.

According to representatives of Binance, yesterday, May 7, a “a large scale security breach today” of the marketplace was discovered.

Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks. We are still concluding all possible methods used. There may also be additional affected accounts that have not been identified yet.

Binance Team

The company also stressed that hackers managed to access only the “hot” wallet, which kept about 2% of the funds. A total of 7,000 BTC were stolen.

Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

Binance Team

#SAFU fund was created in the middle of last year, to which the exchange sends 10% of the total volume of trade commissions.

Currently, the exchange is going to conduct a comprehensive security audit, which, according to preliminary estimates, can take about a week. During this time, I / O funds will be unavailable, but trade will continue as usual.

Yesterday, May 7, shortly before the appearance of information about the attack, Binance suspended the deposit\withdrawal for all assets represented on the platform. The head of the exchange Changpeng Zhao wrote about the need for unscheduled maintenance

During the AMA session, Changphen Zhao discussed “with various parties”, including the developer of Bitcoin Core Jeremy Rubin and the founder of Bitmain Jihan Wu, the possibility of reorganizing the Bitcoin network to return 7000 BTC. This option was rejected.

Fake Trading Share to Reach 68%, - FTX Global

This figure, however, is significantly lower than what Bitwise's report and the discrepancy is explained by the difference in methodology
04 July 2019   977

The exchange of derivatives FTX Global and Alameda Research conducted a study that estimated the volumes of fictitious transactions (wash trades), presumably prevailing in many cryptocurrency exchanges.

The report says that 68.6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March.

The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.

While our methods are not foolproof, we believe they paint the most accurate picture of the true nature of cryptocurrency trading volume that anyone has made publicly available as of yet.

FTX Global Team

The Alameda methodology involves verifying the authenticity of data on trading volumes on various exchanges based on six different parameters, including manual verification of information and comparison of order books.

FTX Global Website
FTX Global Website

In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques - for example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.

The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.