The CEO of Binance, Changpeng Zhao, said that the Chinese domain of the exchange has suffered a DDoS attack but so far no major problems have been found even if, as can be read in the comments on the post, some users complain that they were not able to login to the platform and therefore could not access their funds.
Earlier today, our Chinese domains experienced targeted DDoS attacks, and users saw some lag and interruption of network access.
Based on the attack pattern, it looks like work of our self-perceived competitors.
No need to be concerned. Systems are fine. Funds are #SAFU.
— CZ Binance 🔶🔶🔶 (@cz_binance) April 29, 2020
A DDoS attack overloads the servers and does not allow users to access the platform and therefore whoever wants to trade or withdraw can not do so, resulting in a significant decrease in trading volumes.
As Zhao himself pointed out, there is no reason to worry and both systems and funds are safe; moreover, Zhao reported that, according to the pattern, it would seem that the attack came from competitors, most likely related to other Asian exchanges.
Reading the comments on the post of the CEO of Binance, a certain hesitation can be noticed, partly because there are no real competitors that could harm Binance’s leadership, and therefore users have assumed that it is a bluff to disguise a mistake of some kind.
Anyway, events like this highlight how dangerous it is to have one’s own funds on a centralized exchange like Binance: in fact, even if a loss hasn’t occurred, as it happened a few weeks ago in decentralized finance (DeFi), users can’t access the platform and therefore their funds are “frozen” until the situation is resolved.
The recommendation is to never leave cryptocurrencies on a centralized platform in order to avoid losing funds due to technical problems or external attacks.