Binance Denies Responsibility for Chinese Investor’s $1M Hack

The exchange asserted that the attack on the account was the result of a personal compromise.

Yi He of Binance denying something with lots of hackers in the background.
Created by Gabor Kovacs from DailyCoin
  • Binance co-founder Yi He has refuted allegations that the exchange was responsible for a hack on a user account.
  • The user condemned the exchange for inaction and slow response.
  • The exchange asserted that the hack was the result of a personal compromise.

Crypto exchange Binance has often been thrust into the spotlight for various reasons, ranging from regulatory woes to convictions for sanction violations. This time, one of its users called the exchange out for the loss of $1 million to a hack, alleging non-proactiveness and incompetency.

However, the exchange has stepped in to defend its integrity.

Binance Not Responsible for Hack

Following Binance user Crypto Nakamao’s narration of his ordeal on Monday, June 3, 2024, the exchange responded that it could not take responsibility for his loss. 

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Addressing the user’s claim that the vulnerability was previously detected, Binance debunked the assertion, clarifying that it did not notice any information about the AGGR plugin before the incident. “According to all the internal records we can find, we did not notice this type of plug-in case before this incident. The team was not aware of the March case you mentioned in your post and it was related to AGGR,” the statement read.

A Binance spokesperson told DailyCoin that the user had incorrectly assumed the March incident was similar to his case, adding that the exchange had already implemented additional security measures for the flagged concerns related to the situation. The spokesperson emphasized the exchange’s prioritization of heightened security measures, as well as its commitment to ensuring user protection and fund safety.

Also addressing the claims, Binance co founder Yi He also asserted the dangers of weak personal safety measures, emphasizing the need for users to maintain caution when interacting with browsers to prevent hacks and scams. She stated that the user’s $1 million loss could not be compensated for, as it resulted from the manipulation of his personal devices, rather than a vulnerability on the exchange as claimed.

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The exchange added that it is in contact with the impacted user and is offering assistance to mitigate the impact of the incident, urging users to maintain vigilance to prevent falling victim to similar threats.

What Happened to the Binance User?

According to Nakamao, his Binance account lost $1 million due to a compromise facilitated by a malicious browser extension called “Aggr.”

The investigation found that the extension, which has since been deleted, collected the user’s cookies, particularly fishing for links to Binance’s website, before forwarding them to the hacker’s server.

This allowed the unauthorized third party to gain control of the cookies, thereby securing control of Nakamao’s account. The hacker then bypassed the user’s password and two-factor authentication (2FA), successfully draining most of the user’s savings.

Users are advised against downloading browser extensions because they can pose security threats and allow malevolent actors who prey on asset classes to access them easily.

Discover more about the recent cyberattack on this decentralized exchange:
Velocore Offers Bounty to Hacker Following $7 Million Hack

Read more about Coinbase’s recent actions aimed at supporting the ongoing advocacy for a pro-industry leadership change:
Coinbase Matches Ripple with $25M Election Campaign Donation

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.