According to a report by a news agency, Binance traces hackers to reduce the number of crypto crimes that are prevalent in the recent time. An order has been laid out by the High Court of London to Binance which is a famous digital currency exchange to identify crypto hackers and stop their accounts. This circular was published after a crypto user launched a complaint regarding a hack of digital currency worth $2.6 million.
You may wonder, how many times has Binance been hacked? In early 2018, the Binance exchange came under an API and phishing attack. What is phishing? In simple terms, it is bad for people to create a Binance like a website and trick the users to use your username and password. Once the phishers derive a good amount of login IDs, they log into those original accounts and try to transfer the funds out of them.
Binance Traces Hackers: How This New Regulation Started?
In a judgment that was made public this week, a request that was put forward by the AI (Artificial Intelligence) company Fetch.ai was granted by the judge of London’s High Court. As per the new judgment, Binance traces hackers, by identifying them. Once they are traced, Binance will have to seize their account.
Even though the sum of the hack is relatively small, this is the first Binance hack 2021 that involved the public. This new regulation is a test for England to see how they handle frauds at the digital currency platform. A Binance spokesperson said,
“We can confirm that we are helping Fetch.ai in the recovery of assets. Binance routinely freezes accounts that are identified as having suspicious activity occurring in line with our security policies and commitment to ensuring that users are protected while using our platform.”
Even though Binance is a murky corporate structure, it has still faced acute regulatory scrutiny despite the global crackdown on digital currencies over issues that such digital currency exchanges can be utilized for money laundering or can enable crypto users to fall victim to runaway bets and scams.
Binance has asserted that it is devoted to following the appropriate regulations wherever it functions and has also extended its international advisory board and compliance team.
A representative from Fetch.ai told in an interview,
“We need to dispel the myth that crypto assets are anonymous. The reality is that with the right rules and applications they can be tracked, traced, and recovered.”
Fetch.ai, which operates in Singapore and England and designs AI projects for blockchain databases, charges that the fraudsters hacked their digital currency account on Binance on 6 June 2021.
According to a new regulation set by London’s high court, Binance traces hackers, by identifying them. Once they are traced, Binance will have to seize their account.
The representative from Fetch.ai said that Binance had notified them about the Binance account hacked or there might be some abnormal activities in their account and had frozen the indicated sum. But the claimants will have to prove that they are the victims of the hack, and then they shall get the Binance hack refund.
“We have been working closely with Binance and local enforcement to obtain details about the hacker. Issuing a court order for the release of this information is a standard process.”