Binance Co-CEO Discusses Hacker Attack

Hello, everyone, I’m Binance’s co-CEO,

and also Binance’s Chief

Customer Service Officer, He Yi.

So, this morning,

we experienced a hacking incident,

which resulted in affected assets totaling six

point three billion U.S. dollars.

With the collective help of

everyone in the industry, um,

three billion U.S. dollars was frozen for us.

I’d also like to thank everyone in the industry

for their collective help. Um, I think

people in the industry are often

misunderstood, but today’s

incident is, I think, a very

good opportunity to prove that our entire

industry is united, mutually supportive,

caring, and genuinely

concerned about the industry’s

development.

The second point is that, so far,

our suspension of, um, withdrawals has

been in place for nearly a day,

and we expect that, in the future,

we will reopen withdrawals within the next 42

hours.

Um, the reason is that although

the scale of the assets actually affected

amounts to more than

three billion U.S.

dollars, it may account for

only a little over two percent of all our users’

assets and publicly disclosed reserve

assets.

So, in order to ensure the security

of the remaining assets,

according to our procedures,

we do need to suspend withdrawals first,

to ensure the entire environment

is free of contamination,

and only when there is no impact on everyone

will we reopen withdrawals.

So, thank you for your support and understanding,

and thank you to all the friends in the community who

have, um, spoken up and

explained things for us.

Um, words cannot express our gratitude.

Um, we—we will, going forward,

hold more market activities to give back

to our users.

The third point is that during this period,

in addition to rebuilding the security environment,

reconfiguring wallet settings, and conducting security

reviews, um, we will use our own

funds to first fully cover these stolen

assets, ensuring they are fully matched with our users’

assets. We will also, in

the coming days, um, update our

Merkle data,

so you can use your own POL to see

your assets.

Since Binance does normally receive

most of its assets in crypto,

and we are also highly confident in this industry,

accordingly,

most of our assets are in crypto,

and most of the stolen assets can be matched

accordingly. Um, only a small

portion of the assets really needs to be purchased

on- exchange or over the counter.

So, unlike what some people

understand, that more than six billion U.S. dollars has to be

In the market, um, buying assets,

this understanding is still slightly—slightly different,

right? Um, I’d also like to clarify that here.

So, the fourth point is that I’m not a

professional, um, technical

person, um, but according to the

current review by the security and technical teams,

the entire attack was a very

complex, composite attack,

so we will be even more cautious

throughout this process.

Um, in the future, we will produce a detailed

technical security audit report,

and make it public as well.

Um, I also hope that if you are

a practitioner in this industry,

in terms of security, you can

work with us to build future security

environment standards. Finally, um,

I think that hackers as a whole

have become, in the AI era,

a threat to the entire industry.

So in the future, we will continue to

never give up tracking these hackers.

Um, we will investigate to the very end. We will work with

law enforcement teams around the world

to pursue this team and track down this money.

Um, we will not let this industry

lose the thriving, prosperous state

it should have because of

hackers. And of course, we

have also done many things wrong,

and we should, um, have made earlier,

greater investments in security

and established more rigorous standards.

So, um,

in the future, whether in our investment in

security or in our efforts to combat hackers,

we will never go easy on them, um, and we also invite

more industry practitioners to join us in

jointly maintaining this better environment.

All right, thank you, everyone.