Binance co-founder denies responsibility for $1M trading loss for hacked account.

Yi He, co-founder of crypto exchange Binance, has denied claims that a breach in the platform's security led to the loss of $1 million worth of crypto from one user's account. The Binance co-founder wrote on June 3:

“Look closely; this user's account was hacked because their own computer was hacked; they are lost. After the hack, the hacker couldn't withdraw money, so the hacker sold the victim's coin, causing a business loss.”

On the same day, crypto trader Nakamao said he lost his account balance in a “retaliatory trade” without receiving his Binance account password or 2FA instructions. “After that, the security company told me that the hacker had hijacked my web cookies and was using my account,” Nakamao said, adding that after the account was breached, the hacker “bought the corresponding tokens in large quantities in the USDT trading pair, and placed sell orders above the market value in BTC, USDC and other trading pairs.” No money transfer.

After that, the hacker placed several backed bets with the peer, resulting in a loss of nearly $1 million after the transactions went awry. “I received no security reminders from Binance throughout the entire process,” Nakamao said.

In response, Binance's customer service said a hacker at the time of the incident “stole your login credentials with a plug and pretended to be you to perform tasks and transactions.” According to the exchange, Nakamo responded to the request to suspend the account within 1 minute and 19 seconds of receiving it, but by then the hacker had already completed several profitable trades in the compromised account.

“We're sorry for your experience, but according to what we've learned so far, your loss of assets is due to your related devices being installed with malicious plugins. Such issues have nothing to do with Binance.”

Nakamao didn't seem to agree with the assessment, saying afterwards:

“Also, Binance knew about the existence of this plugin a long time ago, and encouraged KOL to get more information from the hacker. When the plugin became more popular, my account was hacked. Binance tracked down the hacker's address at least 3 or 4 weeks ago, and also got the name and link of the plugin from KOL. .

Binance's Yi continued to warn users of the dangers of logging into accounts with cookie plugins enabled to save them the minor hassle of typing their passwords at every login: “Binance cannot compensate users when their own login tools are compromised,” she said. he said.

Yi He, a former Chinese TV host, is currently one of two women at the helm of the world's largest crypto exchanges, the other being BitGate CEO Gracie Chen. In April, her husband, Binance founder and former CEO Changpeng Zhao, said she had “the best outcome” in the US money laundering case.

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