Binance Co-founder Denies Platform Security Breach Amidst User's $1M Crypto Loss
Summary:
Yi He, co-founder of Binance, denied claims that a $1 million crypto loss was the result of a security breach on the platform. The loss, suffered by trader Nakamao, was instead attributed to the user's own computer being hacked. Binance urged its users to be wary of active cookie plug-ins during account logins, acknowledging the company's inability to compensate users for losses incurred due to individual device compromise.
Co-founder of the cryptocurrency exchange Binance, Yi He, has refuted allegations that a $1 million worth cryptocurrency loss from a user's account was due to a security flaw in the platform. He stated that the user's computer was compromised, leading to the account breach, and not a fault on Binance's part. The hacker was unable to withdraw funds after the breach, but sold the victim's coins resulting in trading losses.
On the same day, a cryptocurrency trader known as Nakamao claimed to have lost his entire account balance through a process known as "counter-trading," without someone having access to his Binance account password or 2FA instructions. He said a security company informed him that the hacker managed to take control of his account via his web cookies. The hacker subsequently engaged in activities that led to almost $1 million in losses due to poor trades. Despite the account breach, Nakamao alleges he received no security alerts from Binance.
Nakamao states that unauthorized leveraged trades in his account caused significant fluctuations in the price of some altcoins. Binance’s customer service alleges that Nakamao's account was hacked through a plug-in, with the hacker posing as Nakamao to carry out transactions. As per Binance, it took action to freeze Nakamao's account within a minute and nineteen seconds of being alerted to the issue, but by this point, the hacker had already executed several leveraged trades.
Binance stated that his loss was caused by his devices being compromised due to the installation of harmful plug-ins, and asserted no responsibility in the matter. Nakamao, however, alleges that Binance was aware of the plug-in and even motivated others to gather more information on the hacker, and that his account was compromised when the hacker used this plug-in again.
In response to these incidents, Yi He urged users to be wary of logging into their accounts with active cookie plug-ins, as the minor convenience of not having to input their passwords could lead to potential security threats. She reinforced that Binance lacks the ability to compensate users whose login devices have been compromised.
Yi He is one of the leading women in the world of cryptocurrency exchanges, alongside Bitget’s CEO Gracy Chen. Earlier this year, she revealed that her husband, Changpeng Zhao, the co-founder and former CEO of Binance, had received a lenient sentence in the US over money laundering allegations.
Published At
6/3/2024 6:10:49 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.