• A Binance user lost about $1 million in a security breach while the hacker executed counter-trading techniques.

  • Binance asserts that the victim’s personal computer was hacked, and the platform cannot provide compensation.

  • The exchange also states that it processed the user’s request to freeze his account within 1 minute and 19 seconds.

In a recent X post, a Binance user, Nakamao identified himself as a “victim of an undercover agent,” claiming to have lost $1 million due to a security breach. The user alleged that the exploit was carried out by a malicious Chrome plugin that used counter-trading techniques to drain his account.

Nakamao shared his harrowing experience of the hack and expressed his despair at Binance’s alleged lack of response. He stated, “During the whole process, I did not receive any security reminders from Binance.”

我成了币圈卧底的牺牲品，币安账户里100万美元灰飞烟灭直到现在我整个人还是懵的，这几乎是我这几年全部的积蓄。… pic.twitter.com/sSNUTXFZsc

— Nakamao🫡 (@CryptoNakamao) June 3, 2024

However, in response to the user’s complaint, Binance asserted that the incident was likely the result of a hack on Nakamao’s computer. The platform also added that they processed the user’s request to freeze his account in 1 minute and 19 seconds.

用户您好，对于您的遭遇我们非常遗憾，在客服、安全和风控的同事经过案件分析，本着“公开透明”的原则在此复原场景：1. 事件发生的原因是您的电脑本身被黑客攻破… https://t.co/ir75ThfkR0

— 币安Binance华语｜Web3钱包已上线 (@binancezh) June 3, 2024

Elaborating on the exploiter’s strategy, Binance stated that the hacker gained access to the user’s account login status and impersonated Nakamao to execute trades. The platform added, “Since the hacker could not withdraw the currency, they chose to use counter-trading to deplete your account assets.”

Furthermore, Binance asserted that the exchange has not identified any similar issues prior to this incident. While assuring to bolster its investigations, Binance stated that it cannot compensate for the losses as it was not their fault. The post read:

“We sympathize with your experience, but according to the information we have learned so far, the reason for your asset loss is that your related devices were manipulated because of the installation of malicious plug-ins. Unfortunately, we have no way to compensate for such cases that have nothing to do with Binance.”

On February 29, another Binance user shared his experience of losing almost $70,000. The user reported receiving notifications of orders being filled despite never having placed any. The user then witnessed their account holdings vanish.

The post Binance Faces User Backlash After $1 Million Hack Allegations appeared first on Coin Edition.