{"id":7636,"date":"2021-08-11T00:48:11","date_gmt":"2021-08-10T23:48:11","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=7636"},"modified":"2021-08-11T00:48:20","modified_gmt":"2021-08-10T23:48:20","slug":"binance-ceo-gives-his-take-on-the-largest-defi-hack","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/binance-ceo-gives-his-take-on-the-largest-defi-hack\/","title":{"rendered":"Binance CEO gives his take on the largest DeFi hack"},"content":{"rendered":"\n
As earlier reported today, PolyNetwork interoperability protocol<\/a> was hacked, at least $600.3 million in stolen funds has been made off by the hackers, Binance CEO has given his take on the issue.<\/h5>\n\n\n\n
\"Binance<\/figure>\n\n\n\n

On the interoperable Poly Network today, the cryptocurrency community saw the largest decentralized finance (DeFi) heist.<\/p>\n\n\n\n

A total of $610 million was stolen from the Binance Smart Chain (BSC)\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, Ethereum, and Polygon Network as a result of the breach.<\/p>\n\n\n\n

The compromise was detected when an O3 Protocol transaction failed to complete a $150 million transaction, making it one of the greatest breaches to a named protocol since CoinCheck's $530 million theft.<\/p>\n\n\n\n

The unexpected event has sparked a lot of heated debates over DeFi projects' security assurances in comparison to their centralized counterparts.<\/p>\n\n\n\n

Changpeng Zhao, Binance's Chief Executive Officer, also known as CZ on Twitter, has spoken in on the topic.<\/p>\n\n\n\n

According to him, both the CeFi and DeFi <\/a>protocols are distinct in their own right, and both have significant risk characteristics that users should be aware of before utilizing them.<\/p>\n\n\n\n

A big DeFi hack. Brings up a few controversial topics:<\/p>\n\n\n\n

Is CEX or DeFi safer? Well, they are just different. They have different risk characteristics. Learn about how to use them safely before using them. (read my previous tweet)<\/p>

\u2014 CZ \ud83d\udd36 Binance (@cz_binance) August 10, 2021<\/p><\/blockquote>\n\n\n\n

Because of the seeming ambiguity, some people may want to consider using fiat and legacy banks for transactions<\/a>. However, CZ believes that currency is not in any way safer, pointing out its flaws.<\/p>\n\n\n\n

Fiat is riddled with inflation, expensive transaction fees, and the difficulty of banks stopping people from accessing their own assets, according to the Binance CEO.<\/p>\n\n\n\n

Is fiat safer then? Well, it's different again. It's your own judgement. Inflation, high fees, and banks preventing you from spending your money.<\/p>

\u2014 CZ \ud83d\udd36 Binance (@cz_binance) August 10, 2021<\/p><\/blockquote>\n\n\n\n


Many blockchain protocols are ostensibly designed to be impenetrable to security breaches, but recent events involving multi-million dollar hacks<\/a> suggest otherwise.<\/p>\n\n\n\n

According to CZ, the ability to hack any blockchain network or decentralized application is contingent on the smart contract's architecture.<\/p>\n\n\n\n

While not common, mainstream blockchain networks have a 51 percent chance of assault, and despite the low likelihood of this risk being begun, users are expected to be aware of it and respond accordingly.<\/p>\n\n\n\n

Overall, Changpeng Zhao pointed out that nothing is risk-free, and that centralized exchanges will have to undertake a lot of analysis in order to help freeze cash from the hacker's addresses<\/a>, supposing the funds are placed there.<\/p>\n\n\n\n

Why are CEX CEOs busy while a DeFi gets hacked? We do try to help. While we can't freeze funds on blockchains, if those funds land on our CEX (@binance), we will (try to) freeze them. So, we have a lot of blockchain analysis to do. Nothing is easy. We try.<\/p>

\u2014 CZ \ud83d\udd36 Binance (@cz_binance) August 10, 2021<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

As earlier reported today, PolyNetwork interoperability protocol was hacked, at least $600.3 million in stolen funds has been made off by the hackers, Binance CEO has given his take on the issue. On the interoperable Poly Network today, the cryptocurrency community saw the largest decentralized finance (DeFi) heist. A total of $610 million was stolen […]<\/p>\n","protected":false},"author":12,"featured_media":7638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[834,73],"tags":[2106,197,1496,2099],"class_list":["post-7636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-binance","category-defi-news","tag-binance-ceo","tag-defi","tag-hack","tag-polynetwork"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/08\/Binance-CEO-gives-his-take-on-the-largest-DeFi-hack.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/7636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=7636"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/7636\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/7638"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=7636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=7636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=7636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}