Binance hack costs users millions in losses
In a concerning turn of events for the digital currency sphere, numerous accounts belonging to Binance users have been compromised, leading to the theft of millions of dollars. The situation was brought to public attention following a tweet by Colin Wu, a journalist specializing in cryptocurrencies in China, who shed light on several hacking incidents plaguing the popular exchange platform.
One tweet from Wu brought to the forefront the plight of a Chinese investor who was stripped of $1 million. This unfortunate loss was the result of downloading a Google extension named Aggr, which was endorsed by Key Opinion Leaders (KOLs). The breach, which transpired on May 24, involved the use of cross-trading by the intruders. They sidestepped both password protections and two-factor authentication (2FA) by leveraging stolen cookie data.
A similar ordeal befell another Binance patron on March 1, who endured a grave loss due to an intrusion achieved through identical means—indicating a methodical and relentless pattern of attack by the hackers.
Victim Voices Concerns Over Binance's Security Protocols
A user going by the name Nakamao took to X to share the distressing account of how his Binance balance was decimated, effectively erasing $1 million due to the machinations of a deceitful actor within the crypto sphere. His exploration into the theft, with the backing of a cybersecurity firm, unveiled a complex con involving a so-called community insider.
Nakamao’s revelations did not just uncover the ruse he fell prey to but also cast a spotlight on apparent gaps in Binance's defense and its reaction to the breach. He highlighted a sequence of events that call into question the exchange's vigilance and response efficacy.
He revealed that Binance had prior knowledge of both the malicious actor and the compromised plugin but faltered in taking swift preventative actions, thereby exposing users to further losses. Nakamao criticized the exchange for its sluggish response to the fraudulent cross-trading, which went unchecked for more than an hour, and for its delay in freezing the offender's account—actions, or the lack thereof, that significantly hampered efforts to curb the theft.
Per Nakamao’s account, it took considerable time for Binance to communicate with other platforms to halt the transactions, a delay that only exacerbated the financial damage.
These disclosures have stirred significant unrest and skepticism among the crypto community toward Binance's capacity to protect user assets effectively. These incidents underscore the critical need for robust security frameworks and swift action to address and neutralize threats as they emerge.
