The cryptocurrency exchange was able to reverse a massive hack almost as it took place
The Binance cryptocurrency exchange demonstrated extraordinary efficiency in protecting user assets during a recent situation. Binance CEO Changpeng Zhao (CZ) disclosed that the firm successfully froze most of the funds looted from its client executives. While on a business trip in Montenegro, the executives encountered a difficult situation where they were forced to empty their crypto wallets, forfeiting about $12.5 million.
The speedy reaction by Binance involved complex on-chain tracking of the stolen crypto, mostly in Tether (USDT), which was moved to a Tron wallet. The company’s swift measure led to $11.8 million being frozen, comprising 94.4% of the total funds. This accomplishment highlights Binance’s dedication to security and ability to react effectively in emergencies.
Binance has a protocol in place to deal with such problems, which assesses a temporary courtesy hold on potentially stolen funds. Anyone thought to be a victim has seven days to file a police report to keep stolen funds frozen. This guideline echoes Binance’s proactive view in combating crypto theft while delivering flexibility on an individual basis to support its clients during unfortunate circumstances.
Binance also recently established a Web3 wallet to improve cryptocurrency self-custody. This ingenious wallet, incorporated into the Binance app, presents an unknown method of securing digital assets by dividing a customer’s private keys into three key shares, with the user maintaining control over two. This method strengthens security and aligns with the self-custody ethos in the crypto universe.
CZ also addressed the intricacies regarding crypto security versus traditional fiat currencies, emphasizing the options available in the crypto space. These vary from the traceability and freezing of funds on centralized exchanges to the unclear nature of cryptos such as Monero (XMR).
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
