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Was the market prepared for a serious security breach at Binance?

Binance announced on May 7th that its technical team encountered a major security breach which allowed hackers to lift 7000BTC in that move.

But what does this breach at Binance mean for the universe of crypto coins?

Binance said (17 hours ago):

We have discovered a large scale security breach today, May 7, 2019 at 17:15:24 (UTC). Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks. We are still concluding all possible methods used. There may also be additional affected accounts that have not been identified yet.

However, Binance updated the information on its website (5 hours ago):

Due to irregular trading on some APIs, Binance will restrict all currently existing API keys to have trading functionality only. These keys will then be removed in full at 2019/05/08 1:30 PM (UTC). API users can choose to recreate their API keys now to receive full functionality of API usage going forward. These newly created API keys will not be removed at 1:30 PM (UTC).

What will be the real impact of this serious security breach that has caused a loss of confidence in the order of 7,000 BTC?

As we well know, there are computer systems where security is the main reason for its existence, and in exchange platforms this has to exist. Users choose a platform for the security it offers and when there is a failure, then you lose confidence.

As we well know, there are computer systems where security is the main reason for its existence, and in exchange platforms this has to exist. Users choose a platform for the security it offers and when there is a failure, then you lose confidence.

Let’s look at the numbers that have taken place today on the Binance platform (https://coinmarketcap.com/exchanges/binance/).

We found that about 46% of the transactions were to USDT, meaning users are very suspicious of the platform and prefer to withdraw their money (BTC / USDT) and Binance Coin is losing -3.80% is now worth $ 20.99 USD and in the last 24 hours had a volume of 42,764 BTC with a Market Cap of 500,956 BTC.

Aneta Larkins

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