Binance has experienced a second security breach for the past year. A hacker started releasing the stolen customers’ information related to the site’s KYC process (Know Your Customer). He began releasing the stolen data after Binance refused his extortion demand. 300 Bitcoins was the price he demanded. The platform has been cooperating with authorities, offering a price of 25 Bitcoins for additional information that might reveal the hacker’s identity.
The first data started leaking on Telegram on August 7th, including sensitive information such as hand-written documents and individuals holding their personal identification documents in hand. It’s a common trade for exchange website to request such type of information for users’ account verification. Binance didn’t deny the data belonged to its account holders, but claims the hacker stole the information from a third-party processor.
Coindesk, another leading platform claims that has been in contact with the hacker. “Bnatov Platon”, as his pseudonym says, claims he is in possession of more than 60 thousand pieces of personal data of Binance users. Platon claims he has the information on the hack behind the 7,000 BTC theft that happened earlier this year. His claim says he offered the information on Binance administrators, but the platform refused to negotiate, asserting that the theft was an inside job.
“We would like to inform you that an unidentified individual has threatened and harassed us, demanding 300 BTC in exchange for withholding 10,000 photos that bear similarity to Binance KYC data. We are still investigating this case for legitimacy and relevancy.”
In an official statement, Binance affirmed the situation is nothing more than an extortion scheme and any released customer information results from their refuse to pay the hacker. The platform included in their statement allegations the hacker claims to hold KYC information from other exchange websites. His identity is still unknown.
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