Binance faced a security breach on April 29. The news of the attack unfolded immediately in the crypto community.
Soon after, Changpeng Zhao, CEO of Binance, confirmed the news that the exchange’s Chinese domains were encountering problems. There were a series of distributed denial of service, or DDoS, attacks that momentarily slowed down the Chinese domains.
CZ accused competing crypto exchanges for the event, “Earlier today, our Chinese domains experienced targeted DDoS attacks, and users saw some lag and interruption of network access. Based on the attack pattern, it looks like work of our self-perceived competitors. No need to be concerned. Systems are fine. Funds are SAFU.”
Zhao also highlighted that the exchange has white hackers that serve on to secure the platform. “We of course do. We also have self-perceived “competitors” doing testing for us. Everyone is working on Binance,” he said.
DDoS Attacks Have Damaged Crypto Exchanges in the Past
In recent months, several other crypto exchanges have faced similar DDoS attacks.
On March 12, BitMEX, a derivatives crypto exchange, accused its system-wide blackout on DDoS strikes. Some experts believe that BitMEX’s liquidation intensified the market meltdown which took place the same day.
BitMEX officials portrayed that the attack was a conspiracy against cryptocurrencies; an effort to lower prices.
Furthermore, In February, Bitfinex and OKEx also experienced multiple DDoS strikes. Paolo Ardoino, CTO of Bitfinex, responded at the time, “We’ve seen a level of sophistication that means a deep preparation from the attacker. Good news: this family of attacks won’t work again against Bitfinex.”
As for Binance’s recent attack, Yi He, co-founder of Binance, was first to highlight the DDoS attack. Binance, the firm, did not make any official statement on the attack as of press time. Binance also refused to disclose any information related to the DDoS attacks.
However, exchange officials believe the attacks are a conspiracy against them, executed by their competitors, even though most, if not all, top exchanges have seen DDoS attacks in the past 2 months.