The frequent rate of Crypto-hacking is no news to Cryptocurrency exchanges as well as its users. With Bithumb losing over $30 million to hackers during its system upgrade which was eventually postponed some weeks ago, a new tragedy has followed upon Binance’s recent maintenance upgrade.
During the process of the system upgrade, the exchange detected an unusual trading of SYS which was processed and approved before the exchange halted operations and asked users to reset their API keys.
Unfortunately, a reddit user with with the moniker “rbllkc” who had never created an API key due to his 2FA activated account was shocked to realise that his email which was attached to his Binance account was hacked into. This further led the hacker to take full possession of his 2FA backup code.
Narrating his experience on Reddit, the user can be quoted saying
“Ok, they just responded, 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. Then boom. They f.cked up my life. Binance can’t do anything because transaction were successful.
But the countries are different, ip addresses are different, trying to sell all token and withdraw all my money. 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 and all my money are gone.”
It is not certain what the zero trading session which is to commence for Binance traders in a few days will do for this user, what is certain however is the Secure Asset Fund for Users (SAFU) which will hold 10% of trading fees to offer security to users for extreme cases.
Asides the security breach, Binance seems to be making “money moves” as it expands its services beyond the shores of its headquarters in Malta. The exchange is set to launch its Fiat to Crypto exchange in Uganda.