Binance launches $10 million cryptocurrency fund to snare hackers
Binance has launched a cryptocurrency reserve worth $10 million and is offering a substantial reward to anyone with information related to a recent attack on the platform's users.
Security
Over the weekend, the cryptocurrency trading platform said the funding, made up of cryptocurrency and set aside for future needs, has been created out of the need to address the threat of cyberattack.
Binance is offering a $250,000 bounty in Binance Coin (BNB) with immediate effect out of the fund for information which leads to the legal arrest of those involved in an attack which took place last week.
Binance users were engulfed in chaos as funds from their cryptocurrency wallets vanished, coins were being purchased without authorization, and the panic forced Binance to temporarily halt trading.
Traders reported that their alt coins were being sold off and converted into Bitcoin (BTC) and Viacoin (VIA).
At the heart of the matter was a large-scale phishing attack which was made possible through the use of a fraudulent web domain which looked strikingly similar to the legitimate Binance website.
Users which fell for the scheme input their account credentials, of which were used to create -- but not implement -- an API key over the course of several months.
These keys lay dormant until the time the cyberattackers struck and all at once, users found their funds missing.
There is no evidence to suggest the Binance platform was compromised. Instead, the attack was quickly discovered and wallet funds belonging to the suspected attackers were frozen.
"Even though the hacking attempt against Binance on March 7th was not successful, it was clear it was a large-scale, organized effort," the company says. "This needs to be addressed."
While many users were reimbursed by Binance, when trades used converted BTC, these funds could not be returned, leaving some users out of pocket.
See also: Binance cryptocurrency sell-off disaster blamed on mass phishing campaign
The first person to supply information and evidence that leads to the legal arrest of the hackers, no matter the jurisdiction, will receive the reward. Anonymous tips are also acceptable.
"Binance has currently allocated the equivalent of $10,000,000 in crypto reserves for future bounty awards against any illegal hacking attempts on Binance," the firm added. "We have also invited other exchanges and crypto businesses to join our initiative. We welcome their participation at any time."