Binance, the world’s largest cryptocurrency exchange by daily trading volume, has been ordered by London’s highest court to track hackers and put halts on their account activity.
London to Binance: Keep an Eye Out!
The order came after one of Binance’s customers claimed they were the victim of a cyberattack that saw more than $2 million vanish from their digital wallet. The London High Court has since granted permission to Binance to take the necessary action to identify the hackers in question, track their movements, and ultimately freeze their funds so they can be returned to the victim.
A spokesperson for the company explained in a statement:
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.
The threat of malicious crypto activity appears to be growing given the recent attack on the Poly Network, which hosts blockchains such as Polygon, Binance and Ethereum. The Poly Network was recently compromised and lost more than $610 million in digital funds. During a Q&A session regarding the incident, someone claiming to be the hacker emerged and said that they had engaged in the maneuver “for fun.”
The story has something of a happy ending. The hacker later returned more than half of the funds, saying that obtaining money was never their goal, and that it was always their intention to return the funds but that taking advantage of the bugs in Poly’s system was simply too tempting. The hacker has since been rewarded with $500,000 for showing the Poly team what they need to fix.
At the time of writing, it is unclear if the Poly hack is somehow connected to the $2.6 million lost by the Binance customer. Nevertheless, the London court system is not taking any chances. In an interview, Syedur Rahman, a partner at a law firm that delves in crypto cases, stated:
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.
A Complicated Relationship…
Binance has faced intense regulatory scrutiny from several governments around the world, though it appears to be garnering much more attention in the United Kingdom, which recently banned a division of the exchange known as Binance Limited Markets from operating within its borders. It was decided that the derivative was failing to comply with present anti-money laundering laws and other regulations set to protect customers.
Not long after, Binance Limited withdrew a pending application from the desks of London’s financial overseers while also announcing that it was committed to fixing itself so it could remain in compliance with all the country’s present monetary regulations.