Aaaaaai mr cz, how that happend???
The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed. Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that.
Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.
I’m kinda glad CZ doesn’t compromise user funds to make up for losses. Could this be Not-Satoshi’s revenge on Binance? Just pure speculation.
If the crypto space security gets breached like this every month, in a bear market, with a not-yet-widely-adopted technology, just think of the number of bad actors anticipating flaws in the security when it’s reached mass adoption and with a higher market cap than the 2017 all time high. More newcomers, more new hackers, higher stakes, higher ‘rewards’. Stay SAFU.
It will not reach mass adoption if this continues to occur.
More than that. If the network of systems cannot collectively defend itself from attacks, the long run it bleak. It just shows that the network itself is not enough, you will always have situations that break out to other spaces. Ideally, the operators of this distributed network can implement internal controls and remedies, and it can prove that it can regulate itself. Then we can even get the government regulators to back off and cooperate with what is working and proven.
In the same vein as “make it idiot proof, someone makes a better idiot”, these hackers would find better ways of getting to your funds, technologically or socially. As the cryptography develops, our habits should keep up.
1.48 Billion of losses in credit card fraud last year:
With that said security will always be a top issue.
Exactly, there is an existing industry to compare it to. And that industry is also figuring out how this tech helps with that. You have to do as well or better than the banks and payment processors.
I agree. Also that article is only about credit card fraud. Bank fraud is another huge and separate issue.
Some type of insurance will be able to fix the fraud issues in crypto. The consumer of course will have to pay for it but unlike the present system paying for fraud insurance will be somewhat optional hopefully.
Follow up to this:
Great perspective @Donnybaseball.
Is the same thing more or less true with ADA main chain? In other words, if 50+% of stakeholders want something, they can do it through treasury governance processes.
I would agree this is way better than not having a treasury and governance, but what are the implications? I realize that I don’t recall if treasury proposals are majority vote or some other percentage. Then the question might be whether changing the vote margin helps and how does it help.
Here is some older info on what they are up to.