Binance Hacked!

Hacks within the Crypto sector are not uncommon but tend to occur more on the lower end with rug pulls and honey pot scams with many of the major exchanges implementing security protocols to curb the likelihood of a successful hack.

But as the technology advances so to do the types of hacks that occur and the ways that hacks are undertaken. It is nothing new and investors are always cautioned to ensure that they undertake adequate research and to remember that unless it is your keys it is not your crypto.

This saying is attributed to the fact that if you leave crypto on an exchange and not in the appropriate wallet you do not have it in your possession and we have seen time and time again how exchanges have weaknesses that get exploited or if they go under investors lose their investments.

Binance gets hacked

In a recent Tweet by Changpeng Zhao the CEO of Binance he stated that there had been a hack of about $US100m through a cross chain bridge Token Hub on the BSC network. The tokens that were exploited were BNB Beacon Chain and BNB Chain.

The code was weakened to enable additional BNB to be minted and was exploited and although CZ reported $US100m in value loss this has been disputed by CNBC which is stating the hack is more around the $US570m mark.

CZ rebuts claims

Despite media attention CZ has rebutted claims and called out the media on misreporting the amounts that have been lost during the attack. CZ has promoted his 150 strong global security team and stated that other financial institutions do not have this level of cyber security and stated the attack was prevented once identified.

Video Source

CZ appeared on CNBC to clarify the position and to state that the hack was contained and has been less than $US100m in value lost and to explain code weaknesses and how attacks like this are rare on Binance but still a risk in the sector.

Discussions on how to combat and triangulate criminals on the network were discussed with CNBC seeking clarification on anonymity and how to bring criminals to justice.

CZ briefly discussed how it is possible to track down individual wallets and locate where stolen funds were held and then the ability to monitor their transactions and see where the funds go.

Timely Reminder

As more and more people begin investing in Crypto Currencies it is a timely reminder that if you're investing real money into the sector you need to take extra precautions on your security and what you're investing in.

As the sector is unregulated and highly volatile there are no protections for users who lose their investments so be sure to research and undertake due diligence when investing in the sector and keep your keys secure.

Image sources provided supplemented by canva pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

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