Binance, the world’s largest cryptocurrency exchange by trading volume is facing some hard time as a Reddit user lost all his Bitcoin [BTC]s from the exchange after transactions were resumed on its platform.
The Reddit user posted,
“Ok, they just respond, they ask some information and I sent. After some messages we find out. We think they hacked my pc and my email password. My 2fa credentials are on Dropbox. I think they find my Dropbox password from google and find 2fa credentials.
After that they find Binance password, thanks to google At least they should wait one or two hours. Yes, they have 2fa but I don’t know. I am so unhappy now. I have no solution now. Anyway, thank you all for best wishes and help. Please be careful. Thieves are everywhere. I lost one password an all my money is gone.”
The Reddit user reportedly discovered that the email account that was attached to Binance exchange was hacked. And the hackers acquired his 2FA backup code from his Dropbox.
Based on his post on Reddit, his 2FA Binance account is tampered by hackers. All the tokens he owned were withdrawn after they were converted. He also warned other users to be careful and blamed the security of the exchange for not providing safe and secure trading. According to the sources he never created an API- Application programming interface key because he had activated 2FA on his account.
The exchange suspended trading services on Wednesday after irregular transactions were reported on its platform. Syscoin , a distributed network based on a fork of the bitcoin protocol, posted on Twitter around 21:00 UTC on 3 July that it noticed a potential issue and subsequently asked exchanges to suspend the trading of its SYS cryptocurrency.
The project later confirmed after an investigation that it discovered “odd trading behavior coupled with atypical blockchain activity.”
On July 4, Binance resumed services. Binance, in response to the alert, decided to remove all existing API keys and has requested its users to recreate their API keys. The exchange further mentioned that users who do not have API should not create an API key for the time being.
After the odd trading behavior, the exchange rectified all the irregular trading behavior and offered anyone who was negatively affected by trading during the rising SYS prices a zero-free trading routine from July 5 through July 14.
The incident also forced the exchange to create a ‘Secure Asset Fund for Users’ (SAFU), which as of July 14, will allocate 10 percent of all trading fees received into the fund “to offer protection to users and their funds in extreme cases.”Segregated cold wallet storage will be used for all the SAFU funds, exchange added.
Even after so much precaution and security provided by Binance, the incident happened to the Reddit user is completely unexpected. Crypto enthusiasts are expecting that Binance will find a solution for this incident.
Image via Shutterstock
Join our telegram group