London Court Orders Binance to Track Down Hackers of $2.6 million Hack
Last Updated on 14 August 2021 by CryptoTips.eu
A high court sitting in London has ordered Binance to track and freeze the accounts of hackers who stole $2.6 million in crypto. This is coming on the heels of one of the exchange’s customers complaining of losing funds on the exchange.
According to Reuters, Binance will be collaborating with Artificial Intelligence (AI) company Fetch.ai to track down the accounts where the funds have been deposited. This will enable the exchange to seize the stolen funds and return it to the affected persons.
According to Fetch.ai, Binance had reported unusual activities on its account. The company alleges that this was due to the hackers hacking into some accounts on the Binance exchange on June 6th. The attackers could not access the funds due to account restrictions, but managed to sell to a third party within an hour.
Confirming Binance’s participation in helping to recover the funds, 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.
Binance has faced a number of regulatory challenges recently, including in the U.K. The financial regulator in June this year ruled that Binance did not meet the regulatory requirements to operate in the country. Binance however has expressed willingness to comply with all local regulations wherever the exchange operates.
This case is one of the first public cases involving Binance and could be a test of the exchange’s ability to help fight fraud in the crypto space. A spokesperson for the AI company Binance is working with to recover the assets said that Binance has shown commitment towards tracking the funds and recovering it.
This is not the first Binance has been hacked. However, the exchange has been evolving every time fraudsters plague it to avoid future occurrence. Binance also has a SAFU fund to compensate users of their platform.
If this case succeeds, Binance may be achieving one of the greatest feats in securing its users’ funds and may gain more credibility with the U.K. in the end.
