Binance Crypto Exchange to Resume Deposits and Withdrawals Following Recent Hack

On May 8th this year, Binance fell victim to a security breach and was hacked. This resulted in the loss of 7000 BTC which were taken out. Considering the Bitcoin price at the moment, this translates to the loss of a whopping $40 million. The CEO of Binance Mr. Chengpeng Zhao said that the hack was very well coordinated. However just a week after the system was infiltrated, Binance is up and running once more with trading and deposits to be available to users first and the withdrawal function to be available shortly afterward when the last system checks are finished.

In order for the system upgrade to go smooth, developers had to completely freeze operations on Wednesday. Not much about this upgrade is known to the larger crypto community. However, any crypto enthusiast would guess that in the wake of the recent hacking that led to a loss of 7,000 BTC, the system needed an overhaul mostly with emphasis on its security features. The news of this re-launch has led to a significant spike in demand with Zhao reporting that the restorative measures remained ongoing.

Binance CEO Mr. Chengpeng Zhao

More developments On Binance’s $1.2 Million Giveaway

As a token of appreciation for the user’s patience when the system was down, Binance announced that it would, in turn, offer promotional perks to their users which would involve its own token Binance Coin which itself shot up 7% after the recent announcement of the Binance re-launch. Binance is offering a $1.2 million (50,000 BNB) hefty package to be shared among many users trading more than 1 BTC worth of tokens until May 18th. This will be the promotional period which runs from the relaunch. Up until May 22, for users holding VIP statuses, Binance will give a free promotion onto the next level.

As some people first thought this was a normal maintenance practice on the first and second days of shutdown, after news of the hack few had faith in Zhao and Binance questioning the robustness of his system and whether his reorganization plan was going to work out. This was much fueled by Cryptopia’s current situation. The New Zealand based cryptocurrency exchange was hacked back in January losing $16 million, it has fared badly ever since and is now being liquidated.

Zhao admits that it is highly unlikely to regain original bitcoins lost. However, by the help of its own insurance fund, Binance had covered all losses.

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