Binance Freezes Funds Stolen From The Cryptopia Funds

Jan 17, 2019 at 11:00 Update Date :Jan 17, 2019 at 11:00 UTC

New Zealand based crypto exchange, Cryptopia was at the target of hackers earlier this week. The hackers are said to have made off with a considerable amount of crypto assets.

However, as hackers were trying to move these funds through various exchanges, alert social media users, who had been tracking movements of stolen funds, alerted Chanpeng Zhao, the CEO of Binance, reportedly the world’s largest crypto exchange in terms of traded volume.

Zhao tweeted his train of thought on the matter, saying:-

“Just checked, we were able to freeze some of the funds.  I don’t understand why the hackers keep sending to Binance.  Social media will be pretty fast to report it, and we will freeze it.  It’s a high risk maneuver for them.”

The hack is said to have cost Cryptopia around $ 2.4 million worth of Ethereum (ETC) tokens and nearly $1.2 million of Centrality (CENNZ) tokens.

A number of theories circulating around the breach appear to have surfaced, some suggesting that Cryptopia may have moved funds for security reasons. However, the exchange has refused to comment until concerned authorities are looking into the matter.

Binance was able to freeze the stolen funds and prevented their exchange for other crypto assets, Zhao said. The high standard of digital security on Binance servers has earned it a gleaming reputation worldwide.

Zhao noted that storing of crypto funds on mobile wallets was prone to high risks. He added that exchanges weren’t a safe option, either and said that if indeed users wanted to store cryptocurrencies, they should partner up with the “most secure and reputable exchanges”.

Zhao also received some backlash for promoting and suggesting DX.Exchange, a part of his own firm for users looking to store their digital assets on exchanges.

Hackers on multiple occasions last year had tried to hack into Binance, but were either foiled or didn’t acquire funds of much significance, further cementing Zhao’s exchange as the world’s forerunner in digital security.

Binance had come up with the “Secure Asset Fund for Users” to secure it’s clients against the loss of funds should hackers ever be able to breach it’s security and make of with user’s funds.

To act as a deterrent for any future attacks, the exchange has also set up a hacker bounty fund for “future bounty awards against any illegal hacking attempts on Binance.”

Binance has shown that there would be absolutely zero tolerance against criminal activities in which the exchange could be associated in any way.

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