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Binance User Shares Update on $70,000 Loss Incident Highlighting Security Flaws and Response Issues

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A Binance user known as user doomxbt reported a significant security breach in his account, resulting in the loss of a significant amount of cryptocurrency.

The incident, which occurred in recent days, has raised concerns about the security measures of one of the world’s leading cryptocurrency exchanges.

Doomxbt took to social media X to share his ordeal, which began when he first reported unauthorized activity on his account on February 29. They reported hearing audible notifications for orders being executed, which was an early indication that their account might have been compromised. Despite enabling two-factor authentication, suggesting account security measures were bypassed, doomxbt experienced unexpected trade orders and loan processing, resulting in assets being converted to BNB tokens and withdrawn ulterior.

After noticing these unauthorized transactions, doomxbt filed a police report on February 29 following advice from blockchain detective zachxbt. Despite their proactive approach to cybersecurity, doomxbt’s Binance account was compromised, leading to unauthorized transactions and the withdrawal of 158.08718191 BNB (Binance Coin) to an external address, resulting in a significant loss of $70,000 worth of digital assets.

Transaction details provided by the user include a withdrawal address and transaction ID, highlighting the traceability of unauthorized movements within the platform.

In response to the incident, Binance reached out to doomxbt via a Google Meet video call on March 1, featuring two people billed as “security experts” named Gerry and Holic. According to doomxbt, the experts seemed unprepared and asked the user to run two apps, Nettiquette and KnockKnock, to aid the investigation.

Experts have suggested that the hack could have been executed by accessing browser cookies, but doomxbt remains unclear how the breach occurred despite extensive checks of its system.

The user expressed frustration with Binance’s handling of their case, noting a lack of communication and support from the platform’s help desk, social media manager Alex W, and CEO Richard Teng. No apology or indication of compensation for losses suffered was received, leaving doomxbt to deal with the aftermath of the hack, which included paranoia regarding identity theft and the need to secure its online presence and financial assets.

Doomxbt’s experience highlights the vulnerabilities users face even with strict personal cybersecurity measures and the importance of diversified investment strategies to mitigate risks. The incident also highlights the growing scrutiny of cryptocurrency exchanges and their responsibility to protect user assets amid growing reports of security breaches on various platforms, prompting calls for action enhanced security and more responsive customer support.

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