It's been a hectic 24 hours for Binance. "A rough day," CEO Changpeng "CZ" Zhao admitted to viewers during his live ask-me-anything (AMA) session on YouTube early this morning, after a chat user pointed out he looked "exhausted" amid the chaos of a security breach.
But despite his sleep deprivation, CZ offered AMA viewers updates on the hack alongside some other big news.
Here's the breakdown:
On the 7,000 BTC hack (1.00-7.00)
- As noted in Binance's initial blog, the theft was the result of an "advanced, persistent hacking effort."
- The $40 million worth of funds lost will be covered, so any affected users will be reimbursed *
- He said the priority now is to rebuild the system and trace any residue left by the hackers
- No deposits or withdrawals will be accepted until they are satisfied the system has been secured, which may take up to a week
- He advised users to change their 2FA logins as a precaution
- He said it was an "unfortunate incident but it is what it is," pledging transparency in the resolution process
On margin trading (15.15-16.00)
- A margin trading system is rolling out "very soon," and is now in testing phase with large traders
- The platform will have a "gradual" roll-out
- They are now ironing out any potential bugs
On a future stablecoin
- He said there are "a few different proposals and plans" in motion around stablecoin listings following a series of internal discussions
- It is "likely something may happen there"
- But he added they could not commit to anything just yet
On The Launchpad timeline
- CZ confirmed they had selected a shortlist of Launchpad candidates and were now choosing the final candidate, to be announced "hopefully" this month
- It may be delayed by one week due to the hack
- The project will continue on the same format as last time
On Binance Chain
- He mentioned Binance Chain (their native blockchain) was unlikely to migrate to Proof of Stake soon, but added they had not thought much about governance or validator issues yet - they're focused on boosting adoption first
- He also said projects seeking to get listed on Binance would have an "easy" time if they've already issued tokens on Binance Chain
- Binance Chain would eventually be open-source, along with their DEX, once they have momentum
- CZ also confirmed Binance was working on Argentina being the next fiat roll-out, following the recent launch in Singapore
- Binance is in discussions about a credit card partnership, but CZ said he was not directly involved
- The exchange is not looking into acting as a banking business
* In the AMA, CZ discussed reorganizing the bitcoin network to recover the funds, but he has since dismissed this option, confirming Binance will replenish the funds from its own insurance fund.