Friday, January 27, 2023

Binance Prepares $10 Million in Bounty Rewards for Hacker Busts

Binance Prepares $10 Million in Bounty Rewards for Hacker Busts

On March 7th, the popular cryptocurrency exchange Binance experienced a service interruption as a large-scale hacking effort unsuccessfully probed for an attack vector. Now, Binance has announced a $250,000 USD reward for information leading to the capture of those responsible and a $10 million dollar bounty fund going forward for mitigating future attacks.

Also see: Demystifying Decred – Interesting Tech, but Who Is Using It?

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Binance Ain’t Messing Around

Two days after the March 7th incident, Binance CEO Changpeng Zhao declared on Twitter that “We have another move to fight back against (attempted) thieves, soon.”

That move is officially here, as the young but currently dominant crypto exchange is now offering an eye-popping $250,000 reward for “detailed information” leading to the attackers being caught.

Binance’s conditions for the bounty.

Furthermore, the exchange said they’d be setting up a sizeable bounty fund to prevent future attacks:

“Binance has currently allocated the equivalent of $10,000,000 USD in crypto reserves for future bounty awards against any illegal hacking attempts on Binance. We have also invited other exchanges and crypto businesses to join our initiative. We welcome their participation at any time.”

In announcing the bounty on Twitter, Zhao said “As in a football match, you can’t just play defense.” The CEO also asked “all of our angels to help translate the bounty announcement into other language [sic]. Let’s find these bad players, wherever they are in the world.”

Zhao Addresses OKEx Fake Volume Report

Yesterday, March 10th, Bitsonline reported on Medium commentator and former professional poker player Sylvain ‘ArtPlay’ Ribes‘ same-day column entitled “Chasing fake volume: a crypto-plague.”

In the piece, Ribes laid out his case for why he thinks trade volume on top exchanges like OKEx and Huobi doesn’t add up. To that end, Ribes concluded that 92.9 percent of OKEx’s volume was fake and that 81.8 percent of Huobi’s was “ghost volume” similarly.

Notably, Binance CEO Changpeng Zhao has just endorsed Ribes’ piece, calling it “Good in-depth analysis.” Zhao was CTO at OKEx’s parent company OKCoin for nine months in 2014-15.

In the very least, OKEx has some explaining to do accordingly.

What’s your take? Do you think Binance’s bounty system can make a difference? Sound off in the comments below. 

Images via Medium, Daily Express

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