Binance Showing How Exchanges Should React to Hacks
cryptocurrency·@nealmcspadden·
0.000 HBDBinance Showing How Exchanges Should React to Hacks
https://i.gyazo.com/25f20ed176d5fea6271cc58b5a93a5ca.png [Source](https://cointelegraph.com/news/binance-resumes-suspended-services-after-irregular-sys-trading-risk-alert) # Video https://youtu.be/M5hQRUdA3i8 # Transcript everybody if you haven't heard by now finance and sis coin I had some issues last you know twelve or so hours I woke up and tried to withdraw some steam and said withdrawals were suspended I said well that's annoying but you saw on my other post just now I opened three hundred and thirty steam monster packs and to do that you need to buy how much packs so you know I had to get a loan from a friend of mine and I had to make that work but so here at coin Telegraph Murray we we don't know we they has a little article here is short so I'll just always read to you the finances now resume services that very announced the suspension of all treating or withdrawals Wednesday July third the temporary suspension was due to an alert over irregular Cisco integrates from a number of users finance subsequently chose to suspend trading withdrawals and other account functions as well as to take a series of further measures in order to protect its users says coin for its part notified the public in a tweet yesterday that its developers were investigating a possible issue all this is going blockchain saying that it itself asked for exchanges to halt trading while while its team investigated it later tweeted that notwithstanding all trading behavior in a typical blockchain activity its investigation that's this blockchain was safe and said it was asking exchanges to reopen says trading well exact detail remain undisclosed the incident appears to have seen Cisco and trades on - rocket - over for over 80% of the tokens total trade volumes becoming the top traded corn islands by nest platform finance creating data indicates that at one point says prices on the platform hit a staggering 96 Bitcoin or around 640 thousand dollars here's a chart you can see that they went from nothing to 96 0.0038 500 up to ninety six point oh five which is a crazy jump in response to the alert finance acted to remove all existing API keys and has requested all users to recreate their API key stressing the customers who are not regular API users should not create an API key for the time being exchange also says that it is rolled back all in theory all the irregular trades and offers anyone was negatively affected by trading during the rising assist prices a zero free trading June through July 5th through July 14th all other Finance users will be given a 70% rebate on trading fees throughout the same period paid out and the platform's native token finance court lastly the incident has prompted finance to create a secure as a fund for users which as of July 14th while I get 10% of all trading fees received into the fund to offer protection to users and their funds in extreme cases finance says I don't use segregated cold storage for all say who funds according to Coyne micro cam finances curling the largest crypto exchange in the world with around 1.5 billion dollars and trade volume in 24 hours to Preston that's it so a couple things to take note of let's go back so clearly something was under attack or people trying to be hacked or whatever through the API system loves this coin I don't know anything about this coins first I'm hearing that you know I don't pay too much attention to these very small coins so clearly they have some issues to work out what's really interesting here is that a couple things so one Finance is rolling back the trades so you know because it's sound exchange and Finance locked down the platform which was the right thing to do I think you know the funds were still on the platform so they were able to actually do that where they could go back and roll back the trades because when you do a trade on an exchange you're not really doing an on chain transaction in most cases anyways so you know because it's off chain and it's just in an accounting ledger on Finance then they had that ability so that's something to keep in mind for people who keep their money on exchanges so even if you do you know you know trade one thing for another and then for another over a course of long period of time as long as everything remains on that same exchange you are at risk for issues like this I mean Finance isn't doing anything malicious here but you know that's not to say that's somebody else on a different exchange or by names might change their minds in the future so you know you should always know that's a risk with the with keeping with funds on exchanges personally you know I have a little bit of funds on exchangers doing margin lending but it's you know it's an amount I'm willing to lose should have come down to it even though I don't think that will happen the other thing that's really interesting and I think is something that all exchanges should do is taking apart their profits sitting and aside as you know an internal Insurance Fund I've talked about insurance before and I think it is one of the most under appreciated assets to have in the crypto space whether your exchange or whether you're operating some sort of other project you know it's it's not that hard it should be done because you want to safeguard users in case some kind of malicious think happens now you know most block chains are pretty thoroughly vetted but you know even Bitcoin you know core can learn has in the past I'm under 51% attacks so you know these are real things we've be concerned about every other financial institution in the world has insurance of various kinds to protect their users against problems so finance is slowly opening up the different currencies for for deposit and for withdrawal I'm hoping Steen will be released pretty soon and yeah I think they did I think they did the right thing they did it in a timely manner which is great just be aware that you know rolling back transactions on exchange is possible because you haven't done an actual Unchained transaction so hope that helps