Recently, the world’s largest cryptocurrency exchange, Binance has an information disclosure incident that affected about 60,000 users. The leaked identification is called “Know Your Customer” (KYC) service provider, and the hacker obtained the data after successfully invading the Binance third-party supplier.
“Male hands holding smartphone with an open Binance application”by wuestenigel is licensed under CC BY 2.0
According to sources, after stealing information, hackers request to pay 300 bitcoins equivalent to over $3 million at today’s exchange value, otherwise, they would disclose all KYC images they had stolen. Binance confirmed that some of the KYC images published by hackers were consistent with the facts. The compromised image may have been used to change account information and set up a fraudulent account.
Currently, relevant investigations are still in progress, Binance has begun to contact affected users, and advises victims to re-apply for identification documents. Binance said it will provide lifetime VIP membership to all affected users. It is reported that BinanceVIP membership will include transaction fee reduction, technical support, and more service options. In addition, Binance will also offer a reward of 25 bitcoins to reward reporters who provide them with the identity of an attacker.
The report pointed out that the exchange was also exposed to serious network security incidents in May. In this incident, hackers stole $40 million worth of bitcoin and key user information.