Binance Leak Murmurs Spark User Data Security Concerns

Binance data leak allegations spark concern among users.

Man's identity is getting hacked.
Created by Kornelija Poderskytė from DailyCoin
  • Binance user data security has come under scrutiny following reports of a data leak.
  • User concerns heightened following an apparently fraudulent dark web ad offering Binance user KYC data.
  • The security of Binance user data had previously come under scrutiny in 2019.

As the world becomes increasingly digitized, people are increasingly forced to entrust their data to corporations in exchange for accessing several services. The trust dynamic, however, continues to raise data security concerns as the methods used to secure user data have not always proven foolproof.

Despite the bulk of the crypto ethos being about eliminating the need for this trust, centralized platforms that help users convert their assets to fiat still require users to submit sensitive data, bearing the same security risks as any other service-based corporation.

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In the latest instance highlighting this vulnerability, claims of a data leak at Binance, the world’s largest crypto exchange, have whipped up concern within the crypto space amid potential risks of identity theft and loss of user assets.

Binance Users’ KYC Data Leaked?

On January 31, 404 Media reported that sensitive Binance information, including code and internal passwords, had been sitting on a public GitHub repository for months and was only recently removed after Binance submitted a takedown request citing “significant risk” to the firm and “severe harm” to users.

While there was admittedly no evidence that this data had been used for malicious purposes, Binance raised eyebrows by shifting its tone about the potential risks in comments to the press.

Binance asserted that the data was “outdated” and posed “negligible risk.” The exchange further argued that it only issued the takedown request to avoid confusion among users, as opposed to what it had described in the request.

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Confirmation of user fears seemingly appeared on Sunday, February 4, after a February 2 dark web ad for Binance users’ KYC data made the rounds online. However, Binance again issued a statement refuting a leak.

"Our security team has assessed this - as they do all potential threats - and have confirmed there is no such leak from Binance systems. User accounts remains safe," Binance Customer Support wrote.

The controversial dark web ad has since been taken down, with the poster banned from the forum for “attempting to sell a fake DB,” seemingly confirming Binance’s statements.

Still, recent speculation would not be the first time that the safety of Binance user data has come under scrutiny.

A Recurring Theme?

In January 2019, a hacker known as ExploitDOT gained attention for claiming to have stolen the KYC information of Binance users and requesting payment to delete the stolen data. Again, in this instance, Binance publicly refuted the existence of a data breach, with the hacker unable to conclusively prove that they had indeed stolen the data from the exchange.

In August 2019, Binance issued another statement refuting the hack as purported selfies submitted by users as part of KYC requirements made the rounds online.

On the Flipside

  • Recent reports of hackers gaining access to the law enforcement systems of major organizations like Google to subpoena user data have raised further concerns about a similar vulnerability at exchanges like Binance and Coinbase.
  • Users of centralized platforms can not eliminate the risk of data leaks. While DeFi presents an alternative, the sector has also been plagued with security challenges that have led to the loss of billions of dollars in user assets.

Why This Matters

The recent discussions around the safety of Binance user data highlight the risk users face when entrusting their data to corporations.

Read this for more on Binance:
Ex-Binance Executive Steve Christie Rehired After Short Hiatus

Stay up to date with what’s happening in the Polygon ecosystem:
Polygon MATIC Hits 400M Unique Addresses Despite Price Woes

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
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.