In a recent security incident, an investor on Binance, known by the username DoomXBT, experienced a hack that resulted in a loss of $70,000 in cryptocurrencies. Moments before the theft, DoomXBT observed unusual activities within the account, such as unexpected trading orders and loan processes. Despite having two-factor authentication enabled, these signs suggested that the account had been breached.
Signs of Compromise Detected Too Late
DoomXBT noticed order completion alerts and uninitiated trades within the Binance account, raising concerns about unauthorized access. The assets were converted into BNB tokens with no withdrawal transactions visible initially, but later, these were siphoned off the account.
Even with account security measures in place, DoomXBT discovered loans being issued without consent. After contacting Binance support, all BNB converted assets were withdrawn, suggesting a delay in action from Binance’s side. The victim reached out to another exchange, SideShift, suspecting it as the destination for the stolen funds, and expressed dissatisfaction with Binance’s customer service approach.
Binance CEO Steps in Amid Security Breach Fallout
Responding to the incident, Binance CEO Richard Teng acknowledged the issue and informed that a security investigation was underway. The executive extended an apology and assured the user of updates on the situation. Despite this, members of the Binance community criticized the customer service for not freezing the withdrawal transactions immediately and mocked the CEO for echoing the same sentiment as support staff.
DoomXBT prepared a police report as advised, although they held little hope for effective resolution from German authorities in cybercrime matters. With the incident escalating, Binance’s management promised to look closely into the case, leaving the community watchful for the outcome.
