A crypto trader known as “DoomXBT” has detailed an alarming security breach on their Binance account, leading to a significant loss in digital assets.
DoomXBT experienced a loss of $70,000 in digital assets after noticing unauthorized activity on their account. This activity ranged from unexpected trade orders to the processing of loans, culminating in the conversion of assets into BNB tokens and their subsequent withdrawal.
The breach was first flagged by DoomXBT on Feb. 29, when they reported hearing sound notifications for orders being filled, an indication that their account might have been compromised. Despite not observing direct withdrawals at that moment, the trader noticed various unauthorized trades. Adding to the complexity, DoomXBT had two-factor authentication enabled, suggesting that the account’s security measures were bypassed.
Upon contacting Binance support, DoomXBT expressed dissatisfaction with the handling of their case. The response from Binance, as relayed by DoomXBT, pointed to a potential compromise of their Google account as the root cause, a claim that the trader disputed, citing the absence of unrecognized activity and the use of a YubiKey for added security.
In an effort to address the situation, Binance CEO Richard Teng stated that the security task force was conducting a thorough investigation. He acknowledged the gravity of the issue and assured that updates would be provided as the investigation progressed.
DoomXBT responded to Teng’s assurances with skepticism, highlighting a perceived lack of substantive action from Binance’s support team. They criticized the support team for seemingly deflecting responsibility onto Google’s support services despite assurances of account security.
Further complicating the trader’s quest for resolution was their decision to file a police report, as suggested by Binance. DoomXBT’s commentary on the matter reflected a lack of confidence in the effectiveness of law enforcement when it comes to cybercrime, particularly criticizing the German police force’s capabilities in this domain.
Moreover, this incident follows Binance’s announcement of recovering over $4 billion in misdirected customer deposits. This recovery effort stems from 381,616 cases of misdirected deposits over the past two years. The exchange is actively working to enhance its operational efficiency and customer service in the wake of these incidents and as part of its commitment to improving security measures.
In addition, Binance is currently under regulatory scrutiny following the detention of two senior executives by Nigerian authorities. This move is part of a wider clampdown on crypto exchange operations within the nation, highlighting the intricate regulatory environment that digital asset platforms must maneuver through worldwide.