The head of Binance summed up the May hacking of the exchange

The head of the leading cryptocurrency exchange Binance Changpen Zhao summed up the recent attack on the platform, as a result of which hackers managed to steal 7000 BTC.

#Binance Security Incident Recap

“After 10 seconds of the“ F ***, F ***, F *** ”state, I did a quick mental calculation.” – @cz_binance

Yeah, you want to read this.

2 weeks, lessons learned, stress dealt with wisdom gained https://t.co/phV39Hz13O

– Binance (@binance) May 19, 2019

As Zhao writes, right after the hacking, the Binance team was not sure what exactly happened. The exchange's security system was the first to respond, after which the withdrawal of funds from the site was immediately stopped.

“Although in retrospect everything is extremely clear, at that moment we were not 100% sure what exactly happened. Was it a user action, a system crash, or perhaps a hack? Since we were still assessing the situation at the time, we decided to proceed with caution. I posted a tweet stating that the withdrawal systems are in unscheduled maintenance while the team continued to investigate what happened, ”Zhao writes.

CEO Binance also noted the importance of communication with the community in such situations.

“I didn’t know how the community would respond to one week of stopping the withdrawal of funds, but fortunately, transparency in communication paid off, and we received huge support from our amazing community.”

Touched Zhao and the issue of losing money. According to him, immediately after the hacking, he quickly calculated that Binance could easily cover the damage caused by the hackers. In addition, Zhao noted that the amount of stolen funds is comparable to the amount withdrawn by the exchange from circulation during one of the quarterly burning tokens a year ago.

So, in September 2017, when the Chinese government issued a letter prohibiting ICO, and “recommended” returning money to investors, the news of this alone caused many tokens to fall below their ICO price.

“We made a quick calculation: if we helped cover the losses for these projects, it would cost us about $ 6 million … We made this decision. It cost us more than 35% of all the cash we had at the time. ”

At the same time, according to Zhao, such a move eventually brought Binance many users from China and from all over the world, which contributed to the growth of the company.

“Thus, this time $ 40 million [stolen by hackers during the last attack] was a much smaller percentage of our cash reserves, plus we had a #SAFU fund that could fully cover the damage,” said Binance CEO.

He also thanked all members of the community for the help and support provided after the hacking.

Recall the hacker attack, which resulted in the withdrawal of 7000 BTC from the site, Binance underwent in early May.

After hacking, the exchange updated the security system, and the other day the native token of the Binance Coin platform set a new price record.

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