After Binance hacked last week, Binance has issued a bounty of $250,000 in exchange of information about the attackers, as a measure to catch the hackers. Another $10 million is reserved for future bounty rewards while it asks the exchanges globally to follow the suit.
Binance on offensive: bounty reward
Binance has decided to take an offensive approach to the cryptocurrency hack that took place a few days ago. What happened was the exchange suddenly started selling the altcoins at the market rate without the owner’s consent or providing any notification for the same.
The attackers basically used the compromised accounts of the exchange to pump the price of Viacoin.
The Binance team later clarified that it was a phishing attempt while ensuring its users that all the funds are safe and the hackers failed in their attempt. All the fraudulent trades were reversed and withdrawals were stopped.
Now, as a measure to prevent a similar hack in the future, the cryptocurrency exchange is asking the help of the public. Binance is offering a bounty of about $250,000 for the hacker’s information as stated in the announcement:
“We are offering a $250,000 USD equivalent bounty to anyone who supplies information that leads to the legal arrest of the hackers involved in the attempted hacking incident on Binance on March 7th, 2018.”
#Binance Hacker Bounty has just been announced.
Even though the hacking attempt against Binance on March 7th was not successful, it was clear it was a large-scale, organized effort. This needs to be addressed.https://t.co/KzeaRUqxK4
— binance (@binance_2017) March 11, 2018
The first person to provide the information about the hacker resulting in his arrest will receive this reward in the native token of exchange i.e BNB token. In case of multiple sources of information, the bounty will be then divided among the sources.
Being proactive: crypto reserve & global plea
In the crypto community, security is a major problem that continues to be a factor of concern. Talking about the importance of addressing the unethical behavior and crimes in this industry, Binance stated that:
“To ensure a safe crypto community, we can’t simply play defense. We need to actively prevent any instances of hacking before they occur, as well as follow through after-the-fact. Even though the hacking attempt against Binance on March 7th was not successful, it was clear it was a large-scale, organized effort. This needs to be addressed.”
In addition to the bounty, the exchange reserved $10 million for future bounty awards. Binance has also invited other exchanges to do the same.
This is certainly a smart way to combat any such cryptocurrency exchange hack in the future. What are your views on Binance bounty plan? Do you think it’s enough to bring the criminals to justice? Do you have any other suggestions? Let us know below!
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.