Another Binance Account Attacked Due to Negligent Security
Yet another Binance user has taken to social media claiming his digital wallet has been targeted by a cyber attacker resulting in all funds emptied from his crypto account.
The anonymous customer stated in a Twitter post that despite his personal email address remained intact, he didn’t receive a warning from Binance despite the company’s policy restricting all withdrawals without prior confirmation via email.
The popular crypto exchange admitted the discovery of an anonymous login into the account in question, which seemed to originate overseas. The unhappy user had recently been hacked a month prior which resulted in freezing his account. He holds Binance liable for not taking further action such as suspending transactions despite noticing unusual activity.
To prove their mail system was faulty and unsecured, the users created a video of himself using a different IP address to access the account to which no alert was sent as had been promised. He declared that the exchange has no care for users issuing a public warning to all users to be cautious of their Binance accounts.
Although a two-factor authentication process was applied to the account, cyber hackers managed to gain access and change security passwords allowing them to gain control of the man's funds. They then proceeded to sell all Altcoins and withdraw the remaining BTC he owned.
1st Rule of Cryptocurrency: Never Share Key Information Online
In response to the major concern, Changpeng Zhoa, Binance’s founder, stated the company was apologetic towards his loss. After looking into the issue, Zhoa noted the user requested to unlock his account in addition to providing his 2FA key via email. In this case, the hacker already possessed access to his email from which he collected this delicate information. Although the company advised him to change his 2FA he failed to do so within forty-eight hours.
Despite the logical explanation, this is far from the only complaint issues by Binance users regarding the safety of their accounts. This month a different customer who remained anonymous posted on Reddit claiming his Binance account had been frozen for no apparent reason and despite questioning the matter, he failed to receive any explanation. In his post, the user stated that Binance conducted arbitrary proceedings and lacked transparency stating no reasonable cause for his account to have been frozen despite meeting all authentication protocol.
What Will Happen To Binance’s Reputation?
Jared Ted, Founder of DGB, also posted on Twitter that the crypto exchange requested bribes in exchange for listing DGB on the platform. This was done in spite of promising to list DGB free of cost. Ted stated that the company’s legal and financial demands are overwhelming for the majority of coins despite claiming to list cryptos for free.
Standing as the largest exchange worldwide, Binance faces a major reputational blow from consistent public complaints. If negative statements and security issues continue to occur, many believe Binance will quickly lose its status as the number one exchange.