In the wake of last week’s market manipulation saga, which led to all manner of mischief, Binance has issued a bounty. For the capture of the hacker, Binance has earmarked $10 million. The bounty will also cover other unscrupulous hackers. Besides that, Binance has offered $250,000 for information that will lead to the prosecution of those involved in the viacoin pump and dump.
Why Binance is Angry
Binance made it clear that it was willing to spend money after attackers managed to pump the price of viacoin. To achieve it, the hackers used hacked Binance accounts to achieve their nefarious objectives. Their plan was quite simple; they would sell at the top and cash out in Bitcoin before the scam was discovered.
However, Binance says the hackers were not successful. In fact, it says that they lost money on the deal after all withdrawals were denied and the hacked trades reversed. Although it managed to stop the hackers, Binance has announced that it intends to go after the attackers with help from the public.
The exchange announced that it would offer $250,000 USD to anyone who could offer information that led to the arrest and charging of those involved in the incident. This amount is going to be paid in the BNB token, which is the exchange’s native token.
Some Claim Binance is Just Posturing
Even if the hackers are discovered, the chances of prosecution seem remote. For the authorities to arrest the hackers, they would need a lot of evidence that a crime has been committed. While what occurred on the exchange was illegal, the fact that no money was stolen, makes a prosecution highly unlikely.
Thus, the $250,000 can be viewed as a warning. By informing them that the exchange is willing to pursue hackers, it may be hoping that the hackers will look for softer targets next time. The exchange does not require a full KYC. Thus, the only data it would have had on the hackers was an IP address and an email address.
There is $10 Million Set Aside
In the closing of their statement, the exchange stated that it had allocated $10 million is crypto reserves for any future bounty rewards. The exchange also invited others in the crypto business to join the initiative to defend the young crypto sector. If it receives support, this could lead to the formation of a self-regulatory security agency for exchanges.
Binance clarified that it was genuine in its quest to clamp down on all illegal acts and would not hold back from paying for information on the hackers. However, the huge amounts being offered could also be interpreted by some as the exchange flaunting how rich it is.
This is especially so after Coinbase suffered some flak after awarding developers just $2500 each. It was especially sad, considering that the amount it offered developers represented just 45 seconds of its total revenue. With the $10 million pledge, Binance may be simply flexing its financial muscle and warning hackers that it has the ability to stop them.