Binance which is regarded as the largest crypto exchange suffered a hack of its security system that resulted in a loss of about 7000BTC equivalent to $40million dollars. The aftermath of this unfortunate incident has been positive as key stakeholders in have openly backed the exchange to recover strongly from this setback.
Binance CEO Changpeng Zhao Offers Reassurance In Latest Update
There have been different speculations in the media about what process should be taken to recover the lost coins and prevent future occurrences. This has finally been addressed in a letter penned by Binance CEO Changpeng Zhao on the exchange website on March 10.
In what looked like a letter of reassurance and defiance, Zhao revealed that the exchange has begun to take security measures to combat the current issues within its ecosystem. He highlighted that one of the major areas that they are looking to improve is API,2FA and Withdrawal process.
Binance To Integrate Hardware Authentication Features on Its Platform
It could be recalled that these areas were the major aspects of the exchange security protocol exploited by hackers. Binance is also looking to integrate hardware device support feature on its platform to mitigate such problems.
Zhao announced that they would utilize Hardware authentication devices such as Yubikey for this process and would give away 1000 Yubikeys in an upcoming event as an incentive to members. There had been insinuations that more than the reported 7000BTC had been stolen during the hack.
However, it was clarified that only the said amount had been stolen and this could be verified on the blockchain. The exchange has partnered with dozens of community experts that are watching every Binance wallet for suspicious transactions.
Several blockchain and security analytics firms have also come in support of the exchange and are actively assisting to track the stolen funds.
Crypto Market Not Overly Affected by Binance Hack As Bitcoin Hits $6,300 Mark
Zhao concluded by expressing Binance determination to overcome the setback and revealed that the exchange is looking to resume deposits and withdrawals of coins on its platform by next week.
Binance have been impressive in the way that they have handled this crisis and this shows the general confidence that the crypto community has in the exchange.
Despite this major setback there has been little ramification for the market as Bitcoin continues to move at pace to reach the $7000 before the end of the month. Bitcoin currently trades for $6,296 which is a six month high for the premier coin.