Following the recent hack and loss of over 7000 Bitcoins ($40 million) to cyber hackers by his exchange platform, Changpeng Zhao CEO of Binance has rejected moves for donations and external support.
According to the CEO and known to its large customer base, the globally recognized exchange operates an insurance scheme code named ‘SAFU’ which represents “Secure Asset Fund for Users”– a fund set aside to cover unexpected losses or backup scenarios.
Notable among the list of prospective donors is Justin Sun, CEO and Founder of TRON (TRX) cryptocurrency. In his offer of support few hours after the hack, @justinsuntron tweeted:
To support @binance, I will personally deposit 7000 BTC worth USDT (40 million USDT) into @binance to buy $BNB, $BTC, $TRX & $BTT if @cz_binance agrees. No need to FUD! Funds are SAFU!
In his tweet, CZ_binance responded:
Thanks for the support, really appreciate it. But currently no need. We will cover the loss from the SAFU fund, there is enough. We are hurt, but not broke. We are working hard to resolve the issue, so that everyone can deposit and withdraw again. Will take some time.
He added “Not the best of days, but we will stay transparent. Thank you for your support!. We will have to perform some unscheduled server maintenance that will impact deposits and withdrawals for a couple of hours. No need to FUD. Funds are SAFU.”
Others who offered donations include: Project QuarkChain. CZ also appreciated all including Coinbase and other exchanges pledging to block deposits from the hack addresses while commending the “unitedness” of the crypto industry to fight hackers and fraud.
The CEO further made mention of the Binance Charity effort as he said “Our charity efforts will continue, please consider to donate to those, maybe after we pass this bump”.
Binance CEO Gives Up Idea of Bitcoin Network Reorg
Questions on a possible rollback on the Bitcoin network were raised by followers and members of the cryptocurrency community after CZ had suggested the idea to recover the stolen funds.
In his response and after due consultation with some crypto experts, Zhao believes it was a bad idea and responded “To put this to bed, it’s not possible, bitcoin ledger is the most immutable ledger on the planet. Done.”
He went on to outline pros and cons of a possible rollback . Cons include:
- We may damage credibility of BTC.
- We may cause split in both the bitcoin network and community and both damages seem to outweigh $40 million revenge.
- Hackers did demonstrate certain weak points in our design and user confusion that was not obvious before.
- We could “revenge” the hackers by “moving” fees to miners.
- Deter future hacking attempts in the process.
- Explore the possibility of how bitcoin network would deal with situations like these.
Many in the cryptocurrency community especially the mining community had condemned the talk of the Bitcoin network roll back; especially citing its negative implications for decentralization. There were also calls for a decentralized exchange.
See verified binance handles on Twitter: Exchange: @binance