Binance To Launch An ‘Anti-Fraud System’ As Bitrue Receives Praises In Response To The Hack
Bitrue, a Singaporean cryptocurrency exchange, is the latest victim of Crypto Exchange hacks – a vice the cryptocurrency industry has never fully managed to contain. The exchange lost 9.3 million XRP and 2.5 million ADA coins from its hot wallet during a breach. How it happened is quite unbelievable.
What Bitrue termed a mere “system overload” which they estimated could have ended within 18 hours eventually turned out to be a nastier problem. According to the platform’s official statement, the hacker identified and used a vulnerable opening when the exchange’s Risk Control team where conducting their second review process.
In the end, the about 1 am hack led to about 90 users losing their funds. The hacker moved all the $4.2 million worth of user assets to Huobi Global, Binance, ChangeNOW and Bittrex accounts. Luckily, each of the receiving accounts was frozen and the stolen funds, recovered.
And, while Bitrue was back online in less than 24 hours, having recovered each of the lost assets, the platform received praises for how it handled the whole thing. The relatively small platform acted quickly and effectively executed its damage control, thanks to the support of the aforementioned exchanges involved.
The exchange even decided to compensate all those whose digital assets had been stolen, as per the exchange’s insurance policy. The platform’s official update thanked everyone who supported them.
Previously, a United Kingdom and Slovenia-based crypto exchange, GateHub, had suffered the same misfortune, losing nearly $10 million worth of XRP. Before that, lots of other platforms, including Japan’s Zeif, South Korea’s trio of Coinrail, Bithumb and YoBit.net and Italy’s BitGrail had suffered similar hacks.
Binance working on creating an Anti-Fraud System
As Bitrue recovers, a lasting solution to this whole menace could be in the offing, thanks to Binance. Reacting in the wake of the attack, Binance’s CEO, Changpeng Zhao tweeted that they were edging closer to finalizing work on a revolutionary “anti-fraud system” that will be free for all.
Admitting that the industry is, “decentralized, but united,” CZ, as he’s best known, said that the system would be available “soon.” In a series of tweets, he said that once released, the system would be able to track stolen assets using the Blockchain platform they are moved through.
He further said that the tool would be of help to other smaller exchanges, helping them prevent further spread of illegally acquired cryptos.
With the “anti-fraud system” exchanges will no longer have to go through the hassle of trawling through the Blockchain and countercheck the addresses they came from. Instead, it will send quick, timely information on the involved addresses and the type of coins stolen whenever a hack happens. That way, all exchanges are updated quickly and the funds frozen.
Following this announcement, the social media was alive with users airing their opinions on the tool. Many lauded Binance’s decision, saying the system would enhance integrity in the market. Some, however, pointed out that the tool could be used by the authorities to blacklist specific persons.