The recent Binance hacking incident that stirred the cryptocurrency community has taken a new turn. On March 11, Binance Exchange released an official "Binance Hacker Bounty Notice" with significant updates.
Key Details of the Bounty Notice
- $250K Reward: Binance offers 25,000 USD equivalent in BNB (Binance Coin) for information leading to the arrest of the hackers behind the March 7, 2018, attempted attack.
- $10M Future Fund: An additional 10 million USD in digital assets is reserved as a future bounty pool to combat illegal hacking attempts against Binance.
Eligibility and Distribution
- The first individual providing actionable information resulting in a lawful arrest within any jurisdiction will receive the reward.
- If multiple sources contribute to the arrest, the bounty may be divided among them.
Binance's Stance on Cybersecurity
Binance emphasized the critical need for collective action in the crypto community:
"Ensuring a secure ecosystem requires proactive measures—not just defense. The March 7 attack was a large-scale, organized effort, though unsuccessful. We must prevent such threats before they occur and pursue rigorous follow-ups."
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Background: The March 7 Hack Attempt
Binance, the world’s second-largest cryptocurrency exchange, faced a coordinated hacking attack on March 7. Here’s what happened:
- 2-Minute Attack Window: Hackers used stolen API keys to execute programmed market buys for VIA/BTC while 31 pre-funded accounts sold VIA at inflated prices.
- Failed BTC Withdrawal: Automated risk controls froze suspicious withdrawals, trapping the hackers’ VIA deposits instead.
- Market Impact: Despite no direct theft, the event triggered a broad market downturn, with top cryptocurrencies dropping over 6% within 24 hours.
Expert Insight
Li Xiaolai, a prominent figure in China’s crypto space, speculated that the hackers aimed to manipulate VIA’s price across exchanges—profiting from coordinated buy/sell actions even without withdrawing funds from Binance.
Broader Context: Exchange Vulnerabilities
This incident mirrors other high-profile breaches, such as:
- Coincheck (2018): Lost 523M USD in NEM tokens due to unauthorized transfers, crashing Bitcoin prices by ~1,400 USD.
- Industry Response: Exchanges globally are prioritizing security upgrades to restore investor confidence.
FAQs
1. How can users participate in Binance’s bounty program?
Submit verifiable information via Binance’s official channels. Rewards are paid in BNB.
2. Did Binance lose funds during the March 7 attack?
No. Automated systems prevented BTC withdrawals, freezing the hackers’ VIA assets instead.
3. Why is crypto exchange security critical?
Attacks erode trust and destabilize markets—see Coincheck’s 2018 breach for cascading effects.
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