Following Bitrue Hack, Binance Introduces Anti-fraud System for Blocking Stolen Funds

Exchange hacks have become a serious problem in the cryptocurrency space. Nearly all major cryptocurrency exchanges have been hacked at least once and in such cases, and in the most recent development, Bitrue got hacked on June 27, 2019. In the wake of this, Binance CEO Changpeng Zhao says Binance will be introducing an anti-fraud system that blocks any stolen funds coming through the exchange.

Binance itself has had its fair share of the hack experience and is taking a step to help recover lost funds. Like in the case of Bitrue that has promised to return all stolen funds to its customers, a recovery system will be invaluable.

Bitrue got hacked at about 1 am GMT+8 through a vulnerability in the exchange’s  Risk Control team’s 2nd review process. The hackers then accessed Bitrue hot wallet and move 9.3 million XRP and 2.5 million ADA to different exchanges. Binance’s anti-fraud system will be a useful development as stolen funds always pass through exchanges in separate pieces to avoid detection.

Zhao says the only thing required to block stolen funds is a prompt report from the victim so that the exchange can immediately block the stolen funds. The anti-fraud system is to be made available to all very soon and will be completely free of charge.

Also as crypto-related hacks tend to increase during bull markets, this could not have come at a better time. With such a system spread on every cryptocurrency exchange around the world, the possibility of funds recovery may be guaranteed to restore users’ confidence even if thieves cannot be stopped from hacking completely.

Earlier this year, Binance was hacked and over $41 million of users funds were stolen in Bitcoin. Zhao out of desperation to recover lost funds proposed a reorg of the Bitcoin blockchain. It would probably have been easier to restore the funds if this system was in place. 

The era of funds loss to hackers may be drawing close to its end with the launch of this innovative system by Binance and the cryptocurrency community must be looking forward to it at such a time.