Thread by @lawmaster

Some of my thoughts/insights on Binance hack

- $41M is peanuts for Binance - they can make it back in 47 days
- It was the sixth largest exchange hack in history and the total amount stolen from exchanges is now $1.35 billion
- reorg was a stupid idea that wouldn't work

- The hack barely affected the price of BTC. Price is virtually the same as before the hack. If this was two years ago, price would probably drop by 10%+. I think this is very positive
- More interestingly, the hack didn't even affect price of BNB as much. Only 6% drop

I very highly suspect that this hack has something to do with Binance not implementing Segwit yet. Binance said that the security system was bypassed by structuring the transaction in a way that it didn’t trigger any safeguards.

There were 44 outputs in the transaction— 21 of them were Bech32 addresses and 99.97% of BTC was sent to the Segwit addresses. If I were to guess, Binance didn't implement Segwit in the security safeguard system so when 99% of BTC was sent there, the system didn't catch it

Most block explorers like Blockchain don't even support viewing Bech32 addresses, which is pretty hilarious. So if you want to browse the addresses, you can check here. But none of the larger sums have moved (so far).

blockchair.com/bitcoin/transa…