Binance, one of the largest cryptocurrency exchanges in the world, was the main highlight of the crypto-space this week after the platform reported a loss of 7,000 BTC due to a security breach. More so, this news took an interesting turn when Changpeng Zhao, the co-founder, and CEO of Binance, stated that he would consider a blockchain reorg.
This resulted in several influencers speaking up against the idea, including influencers like Mike Novogratz, Udi Wertheimer, Adam Back, and Andreas Antonopoulos. Additionally, Changpeng Zhao stated that they had decided to drop “reorg approach” after consulting Jeremy Rubin, Jihan Wu, James Prestwich, Brandon Curtis, and Hasu. He also listed down the reasons leading to the conclusion, with the cons being damage to Bitcoin’s credibility and a possible split in the network and the community.
Andreas Antonopoulos, the author of Mastering Bitcoin and a well-known Bitcoin proponent, recently opined on the consideration of a Bitcoin reorg. He said,
“A reorg to recover exchange losses is like a bail-out for a bank mismanaging risk. Fortunately, it’s so hard to pull off and so likely to fail that unlike banks, there won’t be a bailout here. Those who fail security get to eat the cost. #NotYourKeysNotYourCoins”
Notably, Zhao apologized for using the term “reorg” in a blog post, detailing an update on the security breach. He said, “Given how much I talk, I sometimes say the wrong stuff, dirty words like ‘reorg’, for which I apologize”.
He further stated,
“It is my strong view that our constant and transparent communication is what sets us apart from the “old way of doing things”, even and especially in tough times. Tentatively, we are looking to resume withdrawals and deposits early next week.”
Udi Wertheimer had this to say about the episode,
.@cz_binance apologizes for saying the word “reorg”.
I feel like I owe him an apology too, maybe I was too harsh.
I think the technical community failed him in a way, with researchers promoting bad ideas as Binance was in crisis mode. Binance wouldn’t actually try this. Onwards! pic.twitter.com/jZ2Lg7N3tO
— Udi Wertheimer (@udiWertheimer) May 10, 2019