Binance founder Zhao Changpeng has offered a bounty worth $250,000 in exchange for information that will lead to the arrest of cyber thieves who attempted to conduct, on March 7, “large-scale phishing and stealing” from the largest cryptoexchange in the world. Binance admitted that it is not able to reverse transactions from accounts which the hackers targeted.
Binance’s March 11 announcement of a bounty highlights the value of a united effort when addressing illicit and criminal behaviour within the cryptocurrency community. The US$250,000 reward will be given in Binance Coin (BNB). If the information received comes from numerous sources, the bounty is set to be distributed between these sources.
According to Binance, they intend to avoid being always on the defensive. The company stresses the importance of preventing future instances of similar types of hacking. Their official statement reads: “To ensure a safe crypto community, we can’t simply play defense. We need to actively prevent any instances of hacking before they occur, as well as follow through after-the-fact. Even though the hacking attempt against Binance on March 7th was not successful, it was clear it was a large-scale, organized effort. This needs to be addressed.”
Besides the bounty offered by Binance, the company is also reserving $10 million worth of crypto reserves for bounty awards in the future, all with the goal of preventing hacks. The company declared that protecting its customers’ funds is their “highest priority”. The company is similarly calling on other exchanges in the world to do the same.
The bounty offered by Binance is aligned with the warning issued by Hong Kong’s Securities and Futures Commission to crypto exchanges after it received complaints of asset misappropriation and market manipulation. The SFC is similarly active in its attempt to protect crypto customers when it sent letters to seven virtual currency platforms and companies who are trying to raise funds via initial coin offerings. The SFC warned the platforms that cases of fraud are ready to be slapped onto those who attempt to engage in illicit activities.