Binance announces $10 million in support

Binance announces $10 million in support for the COVER hack

Binance announced on December 30 a distribution of more than $10 million to users of the platform affected by the COVER hacking.

  • On December 28th, a hacker launched a token emission operation that created 40 quadrillion COVER tokens.
  • The hacker returned more than $3 million to Cover Protocol, but some Binance customers remain affected.

Binance will pay more than $10 million to clients who lost money when the hacker hacked the COVER Protocol contract on December 28.

Binance has published a news item on its site concerning the plan to resolve the COVER incident. The token was the victim of a contractual attack on December 28th. A mining rift allowed the hacker to create 40 quadrillion (yes, quadrillion) COVER tokens.

On 30 December, Cover Protocol Bitcoin Trader announced that it would implement a compensation plan. The company wrote that it would take a snapshot of the last block before the hack. Any compensation would be based on the state of affairs at that block. Liquidity providers at that time on Uniswap, SushiSwap and Balancer would be covered. The same applies to holders of YETI and YPIE tokens and all non-migrated SAFE and SAFE2 tokens.

Cover will hit new tokens. The company writes that it is working with centralized exchanges to send the new tokens to their wallets. Cover also notes that Binance will use the same block, 11541218, for its own snapshot of COVER ownership.

Binance to the rescue

On December 31, Binance announced on its website its own plan to clean up the COVER mess. Binance stated that exchange users who purchased COVER after the hacking suffered losses that were too great for Cover Protocol to handle alone. As a result, Binance also decided to pay over $10 million to compensate customers.

The exchange also announced that in the future, Cover Protocol’s new token would use the COVER-new ticker. The disbursement of the new token will be followed by an announcement of this fact. After that, users will no longer be able to withdraw the old COVER tokens.

Retrospective 2020

Piracy and cracking are an integral part of the world of cryptography, just as counterfeiting and bank robbery are features of the fiduciary system. The world of crypto has seen its share of embezzlement in 2020, but not all attempts have been successful.

For example, hackers attacked the TRON network at the beginning of November. The network was upgraded that day, and developers noticed the attempt to make malicious transactions. Not only were they able to prevent the transactions from taking place, but they soon brought the system back online, minimising disruption while keeping the blockchain intact.