NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Did Aftermath of Binance Hack Show Bitcoin is Not as Decentralized? Not Quite

Samuel Wan
Samuel Wan
6 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The aftermath of the Binance hack has left the industry confounded. While the price of Bitcoin remains steady, following a slight dip on the news, the incident has once again raised questions over security and, given Changpeng Zhao’s (CZ) motion to “rollback” the network, whether Bitcoin is as decentralized as we are led to believe.

Binance Hack

Yesterday, Binance released a statement to say hackers had stolen 7,000 BTC in a single transaction. The security breach involved multiple methods of attack, including phishing and viruses, to obtain user API keys, 2FA codes, and potentially other info.

According to the statement, the theft relates to the company’s hot wallet, and no user accounts were affected. In a further attempt to reassure account holders, Binance has said losses would be covered by claiming on SAFU funds.

Have to perform some unscheduled server maintenance that will impact deposits and withdrawals for a couple hours. No need to FUD. Funds are #safu.

— CZ 🔶 BNB (@cz_binance) May 7, 2019

Cyber Security Is A Game of Cat And Mouse

The Binance hack has amplified concerns over security, which is already something that plagues the industry. Moreso, the largest, and perhaps most reputable exchange falling victim puts a severe dent in the credibility of crypto as a whole.

Sadly, as cryptocurrency becomes increasingly mainstream, so will the occurrence of increasingly sophisticated hacks. Colin Baker, writing for ZDNet talks about cybersecurity being a game of cat and mouse. He said:

“While defenders have improved their ability to tackle attacks and take down cybercrime infrastructures, their adversaries have achieved considerable advances too.. Including the ability to perform persistent attacks based on hardware, far below the radar of available defence tools and methods.”

All the same, speculation is rife on how hackers were able to execute with such precision. And with that, one Twitter user attributed the hack to an insider job. While others scorned the suggestion, as far-reaching, given the lack of information available.

No idea how you conclude that from the highlighted portion….

— spiker (@johneakin84) May 8, 2019

Is Bitcoin Decentralization A Front?

Following the hack, CZ held an AMA where he discussed the incident. In updating us on the situation, he said:

“Right now, our main effort is to focus on rebuilding and recovering the system. We need to make sure we completely eradicate any trace of the hackers in all of our accounts, in all of our data. That’s a very tedious process, so unfortuntely, before we finish that, we will not be able to release withdrawls or accept deposits… We estimate this will take about a week.”

Additionally, when talking about how Binance will address the hack, he said:

“There’s the other topic of, do we want to issue a roll back on the Bitcoin network? Because right now, the 7000 BTC is far higher than if we distribute that to miners… To be honest, we can probably do this within the next few days. But there are concerns about if we do a roll back on the Bitcoin network of that scale, it may have some negative consequences, in terms of destroying creditbility for Bitcoin…”

The fallout from this statement has been unfavorable. Not only is the community questioning whether a rollback is possible, or not, but of the idea of “undoing” a transaction is of most concern. As a result, some have accused the Bitcoin network of being centrally managed.

As unfortunate as this incident is, rolling back the Bitcoin network would be disastrous for Bitcoin, and cryptocurrency in general. Since the AMA, CZ has confirmed that Binance will take the hit, and a rollback will not happen.

However, this brings to light the power of exchanges and mining groups to control what should be a decentralized network. Taking this into account, is it time we stop labeling Bitcoin as decentralized?

https://twitter.com/cz_binance/status/1125996194734399488

Tweet123Share290ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin

Bitcoin Consolidation Continues: 2 Key Support Levels To Watch

Bitcoin (BTC) prices showed a sideways movement in the past day producing no significant changes. Following the recent rejection at...

Semilore Faleti 5 hours ago
DOGE

DOGE Bulls Hold The Line At $0.15 — Is The Rally Still Alive?

Dogecoin (DOGE) prices have crashed by over 4% in the past month indicating a slightly dominant bearish influence in recent...

Semilore Faleti 8 hours ago
Top crypto analist: het ideale Dogecoin koopmoment voor kans op 200% rally

Top crypto analist: het ideale Dogecoin koopmoment voor kans op 200% rally

Een top crypto analist heeft op Tradingview zijn licht laten schijnen op de Dogecoin koers. Volgens SwallowAcademy kunnen we binnenkort...

Lars Diederiksen 9 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin

Are Bitcoin Retail Traders Back In The Market? On-Chain Data Suggests So

Opeyemi Sule 1 hour ago
Bitcoin

Bitcoin Must Hold $106,000 And $98,000 To Avoid Breakdown

Scott Matherson 2 hours ago
Bitcoin

Bitcoin’s True Value Is Higher Than $110,000, Expert Warns

Christian Encila 4 hours ago

Premium Sponsors

Press Releases

  • Cryptocurrency is the best way to get rich quickly, easily...

    14 hours ago
  • XRP Cryptocurrency × Dogecoin Mining: HASHJ launches...

    22 hours ago
  • Koja kriptovaluta ima veći potencijal za stvaranje milijunaša XRP ili Shiba Inu

    Koja kriptovaluta ima veći potencijal za stvaranje...

    1 day ago
  • 3 altcoina koje vrijedi pratiti u prvom tjednu srpnja 2025

    1 day ago
  • XRP Bulls Are Soaring — FINDMINING Rides the Wave to...

    1 day ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.