Binance Customer Faces $70k Loss in Security Breach; Support Attributes Incident to Email Provider

Binance Customer Faces $70k Loss in Security Breach; Support Attributes Incident to Email Provider

Crypto Trader Faces Alarming Security Breach on Binance

A crypto trader, known as “DoomXBT,” recently reported a significant security breach on their Binance account, resulting in a loss of $70,000 in digital assets.

DoomXBT discovered unauthorized activity on their account, ranging from unexpected trade orders to the processing of loans. This culminated in the conversion of assets into BNB tokens and subsequent withdrawal.

Initial Signs of Breach

The breach was first noticed on Feb. 29 when DoomXBT heard sound notifications for orders being filled, indicating potential compromise. Despite having two-factor authentication enabled, unauthorized trades were observed, suggesting a bypass of the account’s security measures.

Contacting Binance Support

Upon reaching out to Binance support, DoomXBT expressed dissatisfaction with the handling of their case. The response from Binance implicated a compromise of their Google account as the root cause, a claim disputed by the trader.

Binance CEO Richard Teng assured the community that the security task force was conducting a thorough investigation into the matter and pledged to provide updates as the investigation progressed.

Trader’s Response and Actions

DoomXBT responded with skepticism, criticizing Binance’s support team for allegedly deflecting responsibility onto Google’s support services. The trader also filed a police report as suggested by Binance, reflecting a lack of confidence in law enforcement’s effectiveness in handling cybercrime, specifically criticizing the German police force’s capabilities in this domain.

Related Developments

This incident follows Binance’s recent announcement of recovering over $4 billion in misdirected customer deposits, stemming from 381,616 cases over the past two years. The exchange is actively working to enhance operational efficiency and customer service to improve security measures.

Binance is also under regulatory scrutiny following the detention of two senior executives by Nigerian authorities, part of a broader crackdown on crypto exchange operations within the nation. This highlights the intricate regulatory environment that digital asset platforms must navigate worldwide.

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