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A Fox Business article announced that Binance has recovered some of the assets stolen in the recent Ronin hack. Nearly $6 million in crypto was recoveredless than one percent of the total robbery However, there is hope that larger segments will continue to be recovered in the coming days. US authorities have linked the exploit to Lazarus North Korean hackers.
After the article,
“Binance discovered the stolen assets by literally following the money through a series of hacker steps. Treasury identified a Ethereum Wallet-Address bound to the group. Binance tracked the stolen funds as they were moved from the hackers’ wallet to Tornado Cash a service that allows anonymous token transfers on the Ethereum Blockchain. The funds then went to the stock exchange.”
The stolen assets were found in 86 different Binance accounts. Notable in this case is that even after using Tornado Cash, Binance was able to successfully track the funds.
When we hear certain politicians and bureaucrats speak, it’s almost as if they are Bitcoin and other cryptocurrencies simply anonymize the user. As this case study shows, these soundbites are based more on scaremongering than reality.
The desire to portray Bitcoin and other cryptocurrencies as some sort of anonymous boogeyman who facilitates wrongdoing stems in no small part from fear. Concern that a decentralized financial system will become more popular and commonplace. Fear that those who historically had a near veto-proof grip on our financial systemthat these individuals and institutions cannot exercise the same control over cryptocurrencies.
This is why, in the upcoming battle over CBDCs, it is so important to insist that any digital currency issued by central banks comes with the privacy that citizens deserve.
Bitcoin transactions are tracked on an immutable blockchain that nobody can tamper with or change. Most of the problems we’ve seen over the past few years can be traced back to a failure to properly implement KYC (Know Your Customer) and AML (Anti-Money Laundering) proceduresProcedures that in many cases were required by law.
These procedures are necessary for good reason. What the industry needs is for governments to come together and come up with a reasonable set of exchange policies that can be implementedRules that protect the populace while freeing cryptopreneurs to do what they do best renew.
Once governments fix the weaknesses in their regulatory system, exchanges will be better able to respond to the threats facing the industry. They will be forced to implement these regulations consistently to ensure the industry is safe for those wishing to participate.
This recent rebound shows that the technology itself is simply not the problem. Every exchange needs to start implementing a better technology apparatus, complete with ongoing security reviews. This, coupled with government oversight and better enforcement, will limit the risk encountered across the industry.
Richard Gardner is the CEO of Modulus. He has been a globally recognized subject matter expert for more than two decades, providing complex insight and analysis on cryptocurrency, cybersecurity, financial technology, surveillance technology, blockchain technologies and best practices in general management.
Featured Image: Shutterstock/Sergey Nivens
Binance’s Recovery of Stolen Crypto Illustrates That Digital Assets Are Not a Promised Land for Bad Actors post appeared first on The Daily Hodl.
Source: Crypto News Deutsch