A crypto trader using the pseudonym “DoomXBT” recounted a distressing experience on the Binance exchange, culminating in the loss of $70,000 worth of digital assets to a hacker.
The incident unfolded on February 29 when DoomXBT shared details on X about suspicious activities occurring on their Binance account. Despite having two-factor authentication enabled, the trader observed unexpected trade orders being executed and assets exchanged for BNB tokens. Additionally, unauthorized loans were allegedly initiated within the account.
DoomXBT promptly contacted Binance support upon noticing these anomalies. However, despite their efforts, the funds were ultimately withdrawn, with the trader suspecting they were transferred to another exchange named SideShift.
Expressing dissatisfaction with the handling of the case by Binance support, DoomXBT criticized the customer service agents for allegedly attributing the breach solely to a compromised Google account. Despite filing a police report as suggested by Binance, the trader expressed skepticism regarding the authorities’ ability to address the cybercrime incident effectively.
In response to the incident, Binance CEO Richard Teng assured the affected user that a security task force was actively investigating the matter. Teng apologized for the inconvenience caused and pledged to provide updates as the investigation progressed.
However, the community response was mixed, with some members criticizing Binance’s customer service approach. Many users believed that Binance should have frozen withdrawals before the funds were transferred, while others questioned the adequacy of the CEO’s response, comparing it unfavorably to the customer support representative’s messages.
As the investigation continues, the incident serves as a reminder of the ongoing challenges faced by crypto exchanges in ensuring the security of user accounts and assets.