Enough is enough. After hackers tried to break into Binance Coin (BNB) on March 7th, 2018 the Chinese cryptocurrency exchange is getting serious. They just offered a reward of $250,000 in Binance Coin for any information that can lead to the successful prosecution and jail time for the perpetrators of the hack.
When hackers hit the Binance exchange, they faced a strong built-in security system that prevented them from reaching all their goals. Binance has a strong security platform to protect their exchange and the integrity of clients who trade cryptocurrencies for assets. It is reported that the hackers created a parallel website that posed as the Binance exchange. Social hacking methods were used to mislead clients to this counterfeit site to log in. Once they in fact logged in to this fake site, their credentials were used to manipulate the value of the Viacoin cryptocurrency. By transferring funds illicitly, the value of Viacoin substantially increased, allowing the hackers to earn high “returns” which they fraudulently stowed away in numerous illicit accounts.
The illicit activities of the hackers came to light when the value of the otherwise static Viacoin currency market jumped up with an astounding 250% ending in the US $159 million. This alerted Binance who quickly prevented further illicit sale orders and stopped the attack before it got worse.
On a different note, the US Securities and Exchange Commission (SEC) issued a notice that all crypto exchanges must register with the SEC. The announcement came just as the news about the phishing attack and subsequent hack broke and then went viral around the world. Soon after, the value of Bitcoin dropped with 10%. Analysts are unsure whether the drop was partly due to the security problems at Binance.
It is clear enough, however, that Binance is not taking this lying down. The reward the offer is very substantial; the mean business. If you have information that leads to the incarceration of the brains behind the hacking scam, you might be in for a very big reward. Binance announced on their company blog that they would reward credible information anywhere in the world, no matter from which jurisdiction it comes. They will pay anyone, anywhere, as long as the information leads to the arrest and incarceration of the criminals. Payment will be made in BNB, equal to US $ 250,000.00, calculated on the exchange rate of the day payment is made.
To make the deal even sweeter, Binance will offer this reward split up amongst multiple informants who corroborate, and to make the offer more tempting; they will allow informants to remain anonymous if this is legal in the jurisdiction in question.
To add to their commitment in protecting their reputation, and their security, an offer of a whopping ten million dollars was made available by the company, to remunerate hackers all over the world to come up with novel ways Binance can protect itself from repeats of this break in their security.
Crypto exchanges are the obvious targets for hackers and phishing attacks from all over the world. This is the proverbial ocean to Phish, and analysts believe the frequency and sophistication of attacks will only increase over time. Especially dangerous malware are being developed and used by sophisticated syndicates to steal cryptocurrencies from online wallets. Reviews are available to safeguard yourself against attacks of this nature. Using the safest online wallets is a good start.