Since its establishment in 2017, Binance has become the world’s largest cryptocurrency exchange by trading volume. In 2019, it reported a profit of $1 billion.
Despite its impressive growth, Binance has not been immune to hacking attempts. In fact, it has been hacked twice in less than two years.
The first hack occurred in May 2019 and resulted in the loss of 7,000 BTC, worth $40 million at the time. The funds were stolen from a hot wallet that was used for customer withdrawals.
Binance quickly reimbursed customers from its own reserves and implemented security improvements to prevent such an attack from happening again.
The second hack took place in January 2020 and involved the compromise of user data, including KYC information. No funds were stolen, but the incident highlights the importance of security in the cryptocurrency space.
Binance responded by offering a bounty of up to $250,000 for information leading to the arrest of the hackers.
It is clear that Binance takes security seriously and is committed to protecting its users’ funds. The exchange has demonstrated its ability to rebound from hacks and has implemented measures to prevent them from happening in the future.
As the cryptocurrency industry matures, we can expect exchanges like Binance to continue to play a major role in its development.