Binance to revamp security measures following hack, collaborates with other exchanges and blockchain analytics firms

In an update to the recent security breach, Binance founder and CEO Changpeng Zhao said that the exchange is going to significantly revamp some of its security measures, procedures, and practices.

Earlier this week, hackers stole 7000 BTC, worth around $40 million, from Binance’s BTC hot wallet in a single transaction. Zhao said several community experts are watching every Binance wallet, adding they are also investigating all other areas of the system to ensure no stone is left unturned.

Binance is working with a number of security and blockchain analytics firms to improve its security as well as track down the hackers. It is also collaborating with other cryptocurrency exchanges other service providers to freeze the stolen funds. To that end, Zhao hinted on an industry-wide collaboration to fight such incidents in the future, saying

“It already is sort of an alliance. We have some ideas to contribute more on this front after we get over this incident.”

Speaking of security measures, Zhao said:

“We are making significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident. We are improving our risk management, user behavior analysis, and KYC procedures. We are working on more innovative ways to fight phishing.”

In addition, Binance will soon add support for hardware devices, such as YubiKey and other devices. The exchange will give away 1,000 YubiKeys as soon as that feature is implemented.

Zhao also apologized for his “reorg” statement, adding, “It is my strong view that our constant and transparent communication is what sets us apart from the “old way of doing things”, even and especially in tough times.”

He said that they working to resume deposits and withdrawals as soon as possible, adding that “some of the changes will be done within the window of this week, and many further changes will be added afterwards.”

“Tentatively, we are looking to resume withdrawals and deposits early next week. We still have a large number of tasks and tests to do, and we are working around the clock on it,” Zhao said.

Recently, traders from 35 digital assets firms, including Cumberland, Galaxy Digital Holdings and Ripple, met in Chicago to discuss various options and measures that would help curb fraud and illicit activities in the rapidly growing cryptocurrency ecosystem.