Last week, Binance users mysteriously had their entire balance of alt coins sold at market price unknowingly as part of a phishing related intrusion. Binance quickly began “investigating reports of some users having issues with their funds,” discovering hacker-created API bots that were set up after users had their accounts compromised in a phishing scheme. Binance’s risk management system suspended withdrawals the moment the suspicious activity occurred and resulted in the hackers losing money in their efforts - money that Binance will be donating to charity.
The entire scenario turned out to be a positive for Binance, proving they have satisfactory security measures in place and respond quickly to any attacks. Victims of the bot-initiated selling of altcoins saw the transactions reversed, and no one was adversely affected as a result.
Taking advantage of the crisis turned triumph, Binance has announced that they have allocated $10,000,000 toward bounty rewards for those that help detect and thwart hacking and other cyber-attacks. $250,000 in equivalent BNB are dedicated to the aforementioned incident, going to whomever provides “information that leads to the legal arrest of the hackers involved in the attempted hacking incident on Binance on March 7th, 2018.”
Binance has their own bounty email address where users can report any information they may have pertaining to the hacking, but they also encourage working with local authorities.
Binance has risen to become one of the largest cryptocurrencies exchanges, bringing in $7.5 in revenue in its first three months after launching. In the quarter following, revenue jumped to $200 million. By putting customer's security first and by providing their commitment to security via prompt action, Binance is doing well to ensure they are positioned as a trustworthy exchange in a sea of uncertainty. Such a large bounty is drawing a huge line in the sand as a deterrent for hackers, who will undoubtedly have to think twice knowing there will be an army of cyber-security experts eager to be rewarded to rake in their piece of the reward.