Binance’s Changpeng Zhao addresses “KYC leak FUD,” 25 BTC bounty offered

Binance’s Changpeng Zhao addresses “KYC leak FUD,” 25 BTC bounty offered

News resurfaced that Binance’s know-your-customer (KYC) data had been hacked and uploaded into a Telegram group, dubbed “Find Your Binance KYC.” Several images of people holding their identities for the exchange’s verification process were posted in Telegram groups, causing customers to panic. In response, CEO Changpeng Zhao addressed the allegations.

“Don’t fall into FUD

The cryptocurrency community woke up on Wednesday with the news that Binance had been hacked once again. This time, several Twitter accounts were reporting that KYC data from the biggest cryptocurrency exchange in the world, in terms of trading volume, was leaked.

Despite the commotion, Binance’s founder and CEO Changpeng Zhao took to Twitter to warn the community against the “KYC leak FUD” and that the allegations were being investigated by the firm.

The founding partner at Primitive Ventures, Dovey Wan, commented that even though the rumor that was spreading throughout the cryptocurrency community was true, it was actually outdated. In fact, the accusations refer to a data breach that happened in late August 2018, which had been reported earlier this year.

Along the same lines, Michael Gu (@boxmining) stated that the information going around about Binance’s KYC data was old news and that users should be extremely cautious about anyone claiming to help investigate if someone’s information was hacked. The YouTuber believes that groups attempting to provide information regarding the leak are likely bad actors.

25 BTC bounty

Several hours after a series of Twitter accounts reported the news about the alleged KYC-data theft, Binance released an official statement to address its customers.

According to the statement, before exposing the information to the public and several media outlets, the hacker contacted Binance demanding 300 Bitcoin in exchange for withholding 10,000 photos of the exchange’s KYC data. After Binance refused to meet the hacker’s demands, he proceeded to upload the images into the Telegram group previously mentioned.

The firm’s security team found certain inconsistencies that lead them to believe that the data was not obtained directly from Binance’s servers but instead from a third-party vendor that used to be in charge of the KYC verification.

“At the present time, no evidence has been supplied that indicates any KYC images have been obtained from Binance, as these images do not contain the digital watermark imprinted by our system… On initial review of the images made public, they all appear to be dated from February of 2018, at which time Binance had contracted a third-party vendor for KYC verification in order to handle the high volume of requests at that time. Currently, we are investigating with the third-party vendor for more information.”

Binance has now contacted different law enforcement agencies and is offering up to 25 BTC, approximately $300,000, to anyone who is able to provide relevant information that helps identify the hackers.

Filed Under: Binance, Hacks, Rumors
Ali Martinez

After Ali began forex trading in 2012 In 2014, he came across Bitcoin’s whitepaper and was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started buying Bitcoin. By 2015, he started traveling to spread the word about Bitcoin.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.