Binance rewards $ 10 million – If you Caught the Hacker

Binance rewards $ 10 million - If you Caught the Hacker

“Binance is offering a reward equivalent to $ 250,000 to any person who supplies information that results in the arrest of the hackers who tried to break into the Binance system on March 7th, 2018, the company announced.

The company is serious about combating cybercrime, and to show their commitment they offered a further $10 million in rewards to informants who assist them in arresting cyber-criminals. We are taking a pro-active stance, and for this purpose Binance set aside $10 million in cryptocurrency rewards, for this purpose, the exchange announced.

“To ensure a safe crypto community, we can’t simply play defence. We need to actively prevent any instances of hacking before they occur, as well as follow through after-the-fact. Even though the hacking attempt against Binance on March 7th was not successful, it was clear it was a large-scale, organized effort. This needs to be addressed.”

The hackers attempted to steal Bitcoin from Binance, and doing this, they triggered abnormal activity on the Binance exchange. This alerted the Binance Automatic Risk Management System, which immediately responded to stop the attack.

Analysts questioned the public offer.  According to some, it would make more sense to bring professional investigators in to catch the attackers, or at least, to attribute the attack.

Another issue raised by commentators was the “fine print” underpinning the reward.  Binance worded the offer to the requirement that a “legal arrest” has to be made on perpetrators before the reward can be claimed. This means that the accurate identification of the perpetrators, and even their indictment, will not be enough. They have to be in custody, something that seems very hard in an era of globalized cybercrime.

Binance holds $1.77 billion worth of virtual currencies on their exchange, based in Japan. This puts them in the top three cryptocurrency exchanges by trading volume, in the world.  The value of all cryptocurrencies, including Bitcoin, plunged last week after Binance was shaken by cyber attackers.

Binance sprang into action, quickly asserting that the hack was not successful, and to reassure customers, they disabled withdrawals and froze the coin-deposits of the hackers. The net result was that the hackers lost all the coins they deposited, and they were prevented from withdrawing any stolen coins.

The Achilles-heel of the cryptocurrency markets.

Over the years several large attacks made the news.  To put the danger in contexts, Coincheck lost $400 million after 500 million NEM tokens were stolen in a cyber-attack in January 2018.