Claims that a platform security breach resulted in the loss of $1 million in cryptocurrency from a single user account have been refuted by Yi He, co-founder of cryptocurrency exchange Binance. The co-founder of Binance posted on June 3rd.
“Look closely; this user’s account was breached because their own computer was hacked; they are a lost cause. After the hack, the hacker could not withdraw funds, so the hacker sold the victim’s coins, which led to trading losses.”
The same day, crypto trader Nakamao alleged that they had lost their entire account balance through “counter-trading” without obtaining his Binance account password or two-factor authentication instructions. “Afterwards, the security company told me that the hacker was manipulating my account by holding my web cookies hostage,” said Nakamao, who explained that after the account was breached, the hacker “bought the corresponding tokens in the USDT trading pair with abundant liquidity, and placed limit sell orders that exceeded the market price in the BTC, USDC and other trading pairs with scarce liquidity.”
Following that, the hacker made numerous leveraged wagers against a counterparty, which resulted in losses of about $1 million when the trades were unsuccessful.Nakamao asserts, “I did not receive any security reminders from Binance during the entire process.” Customer support at Binance has responded by saying that during the event, a “hacker stole your account login status through a plug-in and pretended to be you to perform operations and transactions”. The exchange claims that it responded to Nakamo’s request to freeze his account in “1 minute and 19 seconds” after receiving it. But by then, the hacker had already closed a number of leveraged trades using the hacked account.
“We sympathize with your experience, but according to the information we have learned so far, the reason for your asset loss is that your related devices were manipulated because of the installation of malicious plug-ins. Unfortunately, we have no way to compensate for such cases that have nothing to do with Binance.”
Nakamao did not seem to agree with the assessment, alleging thereafter:
“It turns out that Binance knew about the existence of this plugin a long time ago, and even encouraged the KOL to get more information from the hacker. My account was stolen when the plugin was further promoted. Binance tracked down the hacker’s address at least 3 or 4 weeks ago, and also obtained the name and link of the plugin from the KOL.”
The Binance In order to avoid the small annoyance of having to type their passwords every time they logged in, he went on to caution customers about the risks associated with using active cookie plugins. “Binance is not able to compensate users when their own login devices are compromised,” she said. He was once a TV host in China and is today one of two women running the biggest cryptocurrency exchanges in the world, the other being Gracy Chen, the CEO of Bitget. He said in April that Changpeng Zhao, the co-founder and former CEO of Binance, had obtained the “most optimal outcome” during his sentence in the US on allegations of money laundering.