Binance issued an update today on the security breach that took place on 7th May 2019 where the hacker stole 7000 Bitcoins (worth $43 million) by successfully obtaining "API keys, 2FA codes, and other sensitive information.
The deposits and withdrawals were also paused following the incident to revamp security on Binance and improve operating procedures. Below are some key points mentioned in the update.
Improving Security Measures, Procedures and Practises
The update from CZ informs Binance users about the various security measures taken by the exchange operator, in order to avoid any such hacking incidents in the future. The exchange has mentioned in its update that it's revamping all the security measures, procedures, and practices. Most of the changes will reportedly be completed this week, so that normal operations including deposits and withdrawals are available as soon as possible.
Other minor changes would be made at later stages, CZ noted. The Binance team is also working on making changes in the current API, 2FA, and withdrawal validation areas which was the main area exploited by the hacker.
Binance is taking this security incident as an opportunity to improve and tighten on the security front by making changes in the KYC procedures, analyzing the user behavior and also improving its risk management. Phishing is another headache for them to address. For that, they promised to introduce some innovative ways to fight against it. In addition, the Binance team is also going to incorporate many security measures that will happen on the backend, which will not be visible to the users.
Binance in Fighting Mode
Binance has also mentioned that this incident does not sadden them; instead, they are in fighting mode against the hackers. The 7000 BTC that was stolen is a single transaction, so it is quite visible on the blockchain. The community experts are already on it, watching the movement of the coins and updating the Binance team regularly. They have also deployed industry-leading security experts to track down the hackers.
Transparent Communication
The Binance team has also mentioned that the incident will not negatively affect them in the long-term; instead, it will make the exchange more resilient and more secure. Binance's development team also thanked their community for supporting and backing them in these difficult times.
Commenting on the situation, CZ remarked:
"It is my strong view that our constant and transparent communication is what sets us apart from the 'old way of doing things,' even and especially in tough times."
