Binance’s Double Trouble Explained: Software Hack & $2.7 Billion Fine Expose Customer Data and Security Lapses

Binance’s Double Trouble Explained: Software Hack & $2.7 Billion Fine Expose Customer Data and Security Lapses
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Key Insights

  • A hacker claims to have access to a key piece of software owned by Binance, containing user data like emails, phone numbers, and wallet IDs.
  • The hacker allegedly accessed the software through phishing emails targeting law enforcement officers in Uganda, Taiwan, and the Philippines.
  • The hacker is offering to sell this software for about $10,000
  • Binance has been fined about $2.7 Billion, with CX facing a similar $150 million fine

Binance continues to face one setback after another.

This time around, a cyber attacker is selling software that Binance uses to comply with law enforcement requests for $10,000 after three police officers were hacked.

Not only that, a US court has ordered Binance to pay a $2.7 billion fine to the CFTC.

Here are all the regulatory woes that Binance is currently facing in the US.

Hacker Offers Binance Customer Data for Sale

According to recent reports, a hacker now claims to have accessed Binance's law enforcement request software.

This software allows the exchange to cooperate with government agencies on criminal investigations. And this hacker is now selling access to it for $10,000 in Bitcoin or Monero on a dark web forum called Breach Forums.

How did this happen?

According to researchers from Hudson Rock, the hacker allegedly gained access to this software using phishing emails they sent to law enforcement officers in Uganda, the Philippines, and Taiwan.

The emails contained malware that penetrated the victim's devices and siphoned the browser credentials of the officers. With these credentials, the hacker was able to access Binance's law enforcement portal on kodexglobal.com.

Compromised login credentials
Compromised login credentials

According to the snapshot above the three login credentials shown in the image are believed to belong to law enforcement officers in the Criminal Investigation Bureau (CIB) in Taiwan, the Uganda Police Force (UPF), and the Anti-Cybercrime Group (ACG) of the Philippine National Police (PNP).

This portal access being sold for $10,000 is also believed to contain emails, phone numbers wallet IDs and other sensitive information about Binance's customers.

The hacker even posted screenshots of the portal on Breach Forums as proof of the breach.

The ad for Binance's software
The ad for Binance's software

Binance has not confirmed the authenticity of the hacker's claims but has mentioned that its customers' funds have not been compromised so far.

Binance Fined $2.7 Billion by US Court

The cyberattack comes at a time when Binance is facing legal troubles in the US. According to a recent announcement from the CFTC, a US court has ordered Binance to pay $2.7 billion in fines, out of their "ill-gotten fees" collected from customers involved with US-recognized terrorist groups like ISIS and al-Qaeda.

Binance ordered to pay billions
Binance ordered to pay billions

The transactions amounted to $1.35 billion in illegal fees that Binance collected from the customers.

Binance's CEO, Changpeng CZ Zhao has also been fined a whopping $150 million for his "role" in the scheme., after being forced to step down from his position as CEO earlier in the year.

Binance so far, has said that it accepts the court's decision and that it has taken steps to improve its compliance and risk management systems.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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