Binance Resumes Deposit And Withdrawal Services Post Hack

The CEO of major crypto exchange Binance, Changpeng Zhao (CZ), announced on May 12 that the platform will be resuming deposits and withdrawal services on Tuesday.

On May 7th, Binance faced a major hack resulting in the theft of around 7,070 bitcoin (BTC), equivalent to over $40 million at the time, from its hot wallets. Following the mishap, Binance had suspended all transactions while it worked to rearrange it’s security systems.

In addition, it is also working with other exchanges and service providers to find and freeze stolen funds, thanks to a sort of alliance focused on preventing thieves from using what they have stolen.

The CEO did not divulge into much details about the future operations of the exchange. He briefly stated, “Our team is making progress and has been working through the weekend. In the past few days, we have made some significant overhauls to our system, with a large number of advanced security features added and/or completely re-architected. We will share details on some of the changes later.”

Zhao has not been much active in the crypto community since the hack. He explained to his followers that he needed to be discreet about the issue on the forums because the hackers might also be keeping tabs on the exchange on these platforms.

“Mentally, the Binance team is not sad or depressed; on the contrary, we are in fighting mode. This event has further united an already tight team. We have received tremendous support from our community and we are humbled by your support. We will continue to fight for all of us, the community, against hackers and people with ill intentions. I believe this incident, while damaging us now, will actually make us far stronger and more secure in the long run” CZ had said, previously.

From Binance’s disclosures so far, it is known that the hack was reportedly premeditated and conducted by a range of tactics that included phishing and viruses to obtain a large number of 2FA codes and API keys.

As Binance reopens, some traders have suggested that it could fuel the rally of alternative crypto assets, or altcoins, especially if the bitcoin price begins to demonstrate a sideways movement in the near-term.

According to Bitwise Asset Management’s report released in March, Binance accounts for roughly 40 percent of all global bitcoin trading.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.