Security breaches in the network are usually common in crypto space, especially for exchange platforms. On this occasion, hackers have attacked the Binance exchange house again.
Apparently, there could have been a leak that revealed the personal data (KYC) of their customers. So far, passport data, identification and photos of alleged clients of the platform have already been published in a Telegram group to which thousands of people have joined. Most of the victims seem to come from the Asian region.
Recently, Binance CEO Changpeng Zhao described rumors circulating about an alleged leak of KYC data as an attempt to spread “FUD” by the attackers.
Binance reported that there was an attempt to blackmail the hacker group. They claim that they require 300 Bitcoin to not publish other data of about 10,000 customers, which means that the photos in the group may have been an advance. Binance is still verifying the authenticity of the data, as explained in an official statement.
No damages so far
Binance acted against the panic and said that, although they keep working hard to find the source of these images, the data is inconsistent with those of the system, that is, no real evidence has been provided that there was a theft of KYC data in the exchange even lacks the watermark printed by the Binance system.
“We are still investigating this case for legitimacy and relevance. After refusing to cooperate and continue with this extortion, this individual has begun to distribute the data to the public and the media.”
However, the exchange confirms that the photographs appear to have been created in early 2018, when “I had hired an external provider for KYC verification, due to the large volume of requests at that time.”
Changpeng Zhao said on Twitter that, by spreading the link from the Telegram group, he is actually helping malicious hackers or at least paying attention to them.
Binance also added that the exchange security service is trying to determine the source of the images. For any information that helps identify this person, the exchange office is offering a reward of up to 25 BTC.
Not the first time this year
On May 7, 2019 at 17:15:24 UTC there was a security breach in the system and hackers stole 7,000 BTC from the Binance hot wallet. Since then, these attackers have been moving stolen capital from wallet to wallet through other exchange platforms.
Now, however, Coinfirm (who performed the analysis) detected some activity that suggests that hackers are changing their earnings from exchanges and turning them into fiat.
The first transaction occurred here while other transactions followed. However, more recently, it has become clear that the hacker has begun liquidating the BTC in several exchanges.
While the warnings apply, it is clear that the hacker transferred an amount of BTC to each of these exchanges and left the chain there, after being sold by fiat, or remained inactive. This is obviously a comfort to those who are watching their stolen crypto jumping from exchange to exchange.
According to Coinfirm’s Grant Blaisdell, “the analysis of one of the main chains used by the hacker in the accumulation of stolen funds shows that he was able to liquidate at least 1,8087 BTC in exchanges such as Bitfinex, Bitmex, KuCoin, Kuna, Bitmarket, Crypterra, Bitcoin. of and WazirX.
At the time of the incident, Binance decided to assume the losses, stating that it only represented 2% of Binance’s reservations at BTC, an excellent step towards ensuring the trust of your users and those who are not yet. On this occasion, the problem has been detected in time and the necessary security measures to counteract any possible attack should be taken, it is up to the exchange to continue handling this situation efficiently to prevent losses.