Binance Chief Security Officer Jimmy Su said the security incident on October 29 should undergo an independent review by external experts to verify the findings of the internal investigation. Binance is also preparing to establish a security research fund focused on security threats related to blockchain and AI.
He explained why it took several hours to bring the situation under control: the attackers used on-chain transaction approvals that bypassed Binance’s withdrawal system, so suspending withdrawals could not stop the transfer of funds. A new on-chain transaction was needed to revoke the approvals. The hot wallet uses MPC, with no single private key that could be used to revoke them directly, so the team had to devise a procedure on the spot.
· What has been confirmed is the external review, the establishment of the research fund, and the delay in revoking approvals caused by MPC. The fund’s size, the list of participants, and the review findings have not yet been announced.
· Managing internal AI tools to critical infrastructure standards is a future direction described by Jimmy Su; no specific standards or timeline have been provided.
Would you rather see the independent review report first, or a standardized process for revoking approvals?
He explained why it took several hours to bring the situation under control: the attackers used on-chain transaction approvals that bypassed Binance’s withdrawal system, so suspending withdrawals could not stop the transfer of funds. A new on-chain transaction was needed to revoke the approvals. The hot wallet uses MPC, with no single private key that could be used to revoke them directly, so the team had to devise a procedure on the spot.
· What has been confirmed is the external review, the establishment of the research fund, and the delay in revoking approvals caused by MPC. The fund’s size, the list of participants, and the review findings have not yet been announced.
· Managing internal AI tools to critical infrastructure standards is a future direction described by Jimmy Su; no specific standards or timeline have been provided.
Would you rather see the independent review report first, or a standardized process for revoking approvals?
