Ye He, co-founder of cryptocurrency exchange Binance, has denied allegations that…

Ye He, co-founder of cryptocurrency exchange Binance, has denied allegations that a security breach at the platform led to the loss of $1 million in cryptocurrencies from a single person’s account user. The Binance co-founder wrote on June 3:

“Look carefully; This user’s account was hacked because his computer was hacked; It’s a lost cause. After the hack, the hacker was unable to withdraw funds, so he sold the currencies of the victim, resulting in business losses.

The same day, cryptocurrency trader Nakamau claimed to have lost his entire account balance through “counterparty trading” without obtaining his Binance account password or two-factor authentication instructions. “Then the security company told me that the hacker was manipulating my account by holding my web cookies hostage,” Nakamau said, explaining that after the account was compromised, the hacker “purchased the corresponding tokens in the USDT trading pair with abundant liquidity.” » Limit sell orders were placed that exceeded the market price in BTC, USDC, and other trading pairs with tight liquidity.

The hacker then placed a large number of leveraged bets against the counterparty, resulting in losses of nearly $1 million after the trades went wrong. “During the whole process, I did not receive any security reminders from Binance,” Nakamau claims.

Nakamau claims that unauthorized leveraged trades in his account led to significant rises and falls in the prices of certain altcoins. Source: Nakamau

In response, Binance customer support claims that “a hacker hijacked your account’s login status via a plugin and impersonated you to perform trades and transactions” during the incident. According to the exchange, he acted on Nakamo’s request to freeze his account within “one minute and 19 seconds” of receiving it. However, by then, the hacker had already terminated several leveraged trades on the hacked account:

“We sympathize with your experience, but based on the information we have learned so far, the reason you lost your assets is because your affected devices were tampered with by installing malicious plugins. Unfortunately, we have no way to compensate for such cases that have nothing to do with Binance.

Nakamau appears to disagree with this assessment, later saying:

“It turns out that Binance was aware of the existence of this plugin for a long time, and even encouraged the KOL to obtain more information from the hacker. My account was stolen while promoting the plugin. Binance tracked down the hacker’s address at least 3-4 weeks ago, and also obtained the name and link to the plugin from KOL.

Binance then warned users of the risks of logging into accounts with active cookie plugins to avoid the minor inconvenience of having to enter their password each time they log in: “Binance is not able to compensate users when their private connection devices are exposed. in danger,” she said. .

A former Chinese television presenter, she is currently one of two women at the helm of the world’s largest cryptocurrency exchanges, the other being Gracie Chen, CEO of Bitget. In April, it was reported that her husband, Binance co-founder and former CEO Changpeng Zhao, received an “exemplary result” in his US conviction for money laundering.

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