Binance Exchange Back in Business after Supposed Hack

You need not be a financial expert to realize that the cryptocurrency niche has not been up to a great start in 2018. What’s really alarming is the market crisis, as well as the number of hacks targeting big cryptocurrency exchanges, as was the case with the largest Japanese exchange Coincheck just a few days ago.

Binance is one of the largest cryptocurrency exchange worldwide by trading volume (as of January 18th), which used to host trading worth around $5bn per day in the first days of 2018.  Binance has seen a huge spike in the number of registered users starting January 13th. The number of people signing up in a single hour reached 240 000, which caused the exchange to implement restrictions regarding new accounts. Although it seemed like everything was going smoothly for Binance, the exchange has unexpectedly halted all operations as of February 7th.

Binance CEO Changpeng Zhao has claimed that the trading halt is temporary, and happened due to ‘a server issue on our replica database cluster’. He then stated that the problem should be solved in a couple of hours.

As CC investors are not in their best spirits now (due to the major crisis in crypto markets and the fear of a potential hack), the Binance situation created a bit of panic in the cryptocurrency community. Rumors of a supposed hack started going around on Twitter and Reddit, but Zhan kept assuring people that Binance would resume its normal activity as soon as the server issues are solved. He also repeatedly denied that the problem was caused by a third party hack.

Two days later, on February 9th, Binance has resumed trading. Indeed, no data has been lost, and the exchange is even offering special discounts on trading fees for a limited period of time. Binance users get 70% off their trading fees for two weeks starting February 9th, and all withdrawals and trading activity have been resumed.


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