DoomXBT faces a $70,000 loss due to unauthorized Binance account activity, questioning the platform's security measures.
A cryptocurrency enthusiast, operating under the alias “DoomXBT,” has shared a concerning experience of a security violation within their Binance account, which resulted in a substantial financial loss.
DoomXBT recounted a depletion of $70,000 in cryptocurrency holdings following the detection of unauthorized transactions on their account. These included unexpected trading orders and loan activities, eventually leading to the conversion of the stolen assets into BNB tokens and their withdrawal.
The security issue was initially identified by DoomXBT on Feb. 29, upon receiving notification sounds for completed orders, suggesting a potential compromise of their account. Although direct withdrawals were not immediately evident, the trader spotted several unauthorized transactions. Notably, DoomXBT had activated two-factor authentication, indicating that the intruder managed to circumvent the existing security protocols.
After reaching out to Binance's customer service, DoomXBT expressed frustration over how their situation was managed. According to DoomXBT, Binance suggested that the breach might have originated from a compromise of their Google account, a theory the trader contested, pointing out the lack of any suspicious activity there and their use of a YubiKey for enhanced security.
In response to the incident, Binance’s CEO Richard Teng announced that a specialized security team was thoroughly investigating the matter. Teng acknowledged the seriousness of the breach and promised to keep the affected user informed about the investigation’s progress.
DoomXBT, however, met Teng’s promises with skepticism, criticizing the customer support for apparently shifting blame to Google's support services rather than taking responsibility, despite previous assurances regarding the security of user accounts.
The trader's decision to file a police report, as advised by Binance, also brought to light their doubts about the effectiveness of law enforcement agencies in dealing with cybercrime, specifically questioning the competence of the German police in this area.
This event occurred in the backdrop of Binance’s announcement that it had successfully retrieved over $4 billion worth of erroneously sent customer deposits, addressing 381,616 instances of such errors over the last two years. The company continues to strive for better operational performance and customer support, reaffirming its dedication to enhancing security protocols.
Additionally, Binance faces increased regulatory examination after the arrest of two of its high-ranking officials by Nigerian authorities, underscoring the complex regulatory challenges faced by cryptocurrency exchanges globally.