Binance will be offering a hacker bounty incentive, after last week’s market manipulation event that caused all kinds of problems. The company has set aside $10 million to be used towards discovering hackers and other attackers, with $250,000 being provided in exchange for information that leads to the prosecution of last week’s Viacoin pump and dump manipulators.
The attackers managed to inflate the value of Viacoin by using hacked Binance accounts to complete their criminal mission. The thieves planned to sell their digital currency at the top value and then promptly cash out in Bitcoin before being noticed. Binance says that the hackers’ plans were foiled when withdrawals were stopped and the trades were reversed. In fact, the criminals actually lost money.
The company now hopes to determine who the hackers are and keep them from attacking again, with the help of the public, and a nice incentive. To be clear on the reward being offered, Binance is offering $250,000 USD equivalent bounty to anyone who provides information that ends in the arrest of the hackers who were involved in last week’s pump and dump attempt. The reward will be paid out in the exchange’s BNB coins.
The likelihood of the attacker’s arrest seems slim, even if their identities are determined. This is due to a lack of evidence that can be provided, even if the criminals are caught. Authorities cannot move against crypto exchange hackers without plenty of evidence, and since there are no actual victims in this case, it could be difficult to prosecute anyone.
Therefore, Binance’s real goal in offering a reward is probably to warn criminals about trying any other illegal attacks. By making it quite clear that such behavior will not be allowed, the company hopes criminals will think twice before attempting anything else.
Binance explains, “Furthermore, Binance has currently allocated the equivalent of $10,000,000 USD in crypto reserves for future bounty awards against any illegal hacking attempts on Binance. We have also invited other exchanges and crypto businesses to join our initiative. We welcome their participation at any time.”
The company desperately wants to stop any further illegal activity and hopes the cash incentive will help in this effort.