Binance Hack Update – Binance Not Pursuing Rollback Approach But Community Remains Shouting

Binance Hack Update – Binance Not Pursuing Rollback Approach, CZ Confirms As Community Remain Shouting

Binance Hack Update – Binance Not Pursuing Rollback Approach But Community Remains Shouting

With $40 million hacks at crypto exchange Binance, CZ in a recent AMA had indicated his upcoming plans. He stated that Binance team are deciding to pursue rollback on the bitcoin network but he quickly adds his confirmation on Twitter that they’re not considering it.

Crypto community is under the pressure following the unfortunate incident at the most reputed exchange, Binance – this certainly hinders the trust of Binanciers. However, the founder and CEO, CZ is quick to respond to any queries user has on social media Twitter – his planned and excited AMA turned into something that he might have not imagined this time.

Nevertheless, what he said in his AMA hosted at 3:00 UTC on Wednesday about ‘rollback approach’ – will not be continued. Thanks to the discussion with experts. CZ took to Twitter on May 08, (an hour ago to the writing), and released continuous tweets explaining why and how he stopped his plan of regorging-bitcoin-network.

He says that he spoke with various parties including Bitmain co-founder – Jihan Wu, a Bitcoin Core Contributor –Jeremy Rubin, Founder at Summa – James Prestwich, Director of Research at Radar – Brandon Curtis. The discussion made him conclude the decision ‘not to pursue the re-org approach. He adds the reason being considered as follows;

pros:

  1. we could “revenge” the hackers by “moving” the fees to miners;
  2. deter future hacking attempts in the process.
  3. explore the possibility of how bitcoin network would deal with situations like these.

Cons:

  1. we may damage the credibility of BTC,
  2. we may cause a split in both the bitcoin network and community. Both of these damages seems to out-weight $40m revenge.
  3. the hackers did demonstrate certain weak points in our design and user confusion, that was not obvious before.

All that said, this seems an unforgettable lesson for Binance exchange which he concludes by adding ‘it is nevertheless a lesson. It was our responsibility to safeguard user for us.

Crypto Community on Continuous Debate

The sudden attack on Binance occurred on May 07 that resulted into 7074 BTC way out of the exchange noticeably led crypto community shows their anger and shock sentiments – nevertheless, it doubled, even more, when CZ first reveals about reorg approach and closed his AMA. Few such responses involve;

Vortex-Binance
Source: Twitter
Jimmy-Song-Binance
Source: Twitter

 

Mati
Source: Twitter

Nevertheless, WhalePanda, a famous crypto influencer account on Twitter too shared its insight on the ongoing debate of rollback approach; it added

Whalepanda-Binance
source: twitter

 

The unfortunate incident of Binance is – it is what it is- today. CZ reassures the whole community that the funds are #SAFU while deposits are being stopped for now and continued adding, his tech team is mentally strong.

Moreover, BitMex exchange compared Binance incident with Bitfinex’s hack which had happened back in 2016. Nevertheless, the rollback approach was also suggested during that time when Bitfinex had suffered a hack of 120,000 BTC – but few potential consequences stood out as the reason why reorg won’t happen.

The process well explained two years ago here – an indication of bfx breach

Dovey
Source: Twitter
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Binance Hack Update – Binance Not Pursuing Rollback Approach But Community Remains Shouting
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Binance Hack Update – Binance Not Pursuing Rollback Approach But Community Remains Shouting
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With $40 million hacks at crypto exchange Binance, CZ in a recent AMA had indicated his upcoming plans. He stated that he and team are deciding to pursue rollback on the bitcoin network but he quickly adds his confirmation on Twitter that they’re not considering it.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Reach out to her at [email protected]