English Translation of the Video
(Speaker: He Yi / 何一, Co-CEO and Chief Customer Service Officer of Binance)
Hello everyone, I’m He Yi, Co-CEO of Binance and also Binance’s Chief Customer Service Officer.
This morning we experienced a hacking incident that affected $6.3 billion of our assets.
With the joint help of industry practitioners, we were able to freeze $3 billion of those assets. I’d like to thank all industry practitioners for their assistance.
There are often many misunderstandings about people working in our industry. But today’s event is a good opportunity to show that our industry is actually united, mutually supportive, friendly, and genuinely focused on the industry’s development.
Second point:
So far, we have suspended withdrawals for nearly a full day. We expect to reopen withdrawals within the next 42 hours.
The reason is that although the affected assets total over $3 billion, this only accounts for roughly 2-something percent of all our users’ assets and our publicly reported reserve assets.
To ensure the safety of the remaining assets, according to our standard workflow, we first suspend withdrawals to make sure the entire environment is clean and has no impact on users before we reopen withdrawals.
Thank you for your support and understanding, and thanks to everyone in the community who spoke up and helped explain the situation.
This kind of great help needs no formal thanks — we will launch more marketing activities in the future to give back to our users.
Third point:
During this period, in addition to rebuilding the security environment, reconstructing wallet settings, and conducting security reviews, we will use our own funds to first match these stolen assets so that they fully match our users’ assets.
We will also update our Merkle tree in the coming days, so you can verify your own assets through your Proof of Reserves (POR).
Binance normally receives most of its assets in the form of coins, and we remain confident in this industry. Therefore, most of our assets are in coins, and most of the stolen assets can be matched accordingly.
Only a small portion of the assets needs to be purchased on-exchange or over-the-counter (OTC). So the idea some people have that we need to buy more than $6 billion worth of assets from the market is not quite accurate. I’d like to clarify that here.
Fourth point:
I’m not a technical professional myself, but based on the review by our security and technical teams, this was a very complex, multi-layered composite attack.
Because of this, we will be even more cautious during the recovery process. In the future, we will publish a detailed technical security audit report for everyone to see.
I also hope that industry practitioners can join us in building better future security standards.
Finally:
Hackers in the AI era have become a real threat to the entire industry.
We will never give up tracking this hacker. We will investigate thoroughly and work with law enforcement teams around the world to pursue this group and recover the funds.
We will not let the industry lose its originally prosperous development because of hackers.
Of course, there are things we didn’t do well enough — we should have invested more in security earlier and established stricter standards. Going forward, whether in security investment or in cracking down on hackers, we will be uncompromising.
We also invite more industry practitioners to join us in maintaining a better environment.
Thank you, everyone.
@heyibinance