Chinese suppliers


Binance supplying up to $290,000 bounty to catch cryptocurrency KYC extortionist


It’s by no means a boring day in the earth of cryptocurrency, and today is no various.

Around the past few hours an unidentified particular person has been terrorizing cryptocurrency exchange Binance and its end users by making an attempt to extort 300 Bitcoin (just about $3.5 million) out of the business. The trade is also giving a reward of up to 25 BTC ($290,000) to everyone that can aid catch the miscreant.

According to an announcement from Binance, – introduced a lot less than 2 several hours ago – the person claims to posses 10,000 “selfie” images that maintain some similarities to the exchanges know-your-client (KYC) facts.

It would seem that hundreds of the alleged KYC pictures have been leaked to Telegram.


Binance‘s CEO, Changpeng Zhao, tweeted shortly after saying the “KYC leak” was FUD (worry, uncertainty, doubt), a method made use of to hurt the reputation of cryptocurrency enterprises.

But, Binance surely is not taking the accusations evenly.

The exchange has by now tried to function with the extortionist to take care of the problem. Nonetheless, the not known person is “refusing to cooperate and [is] continuing with his extortion,” Binance‘s announcement reads.

Though Binance is however investigating the legitimacy of the extortionists claims, it appears the knowledge becoming utilized as leverage in fact came from a hack that took place last yr.

It appears the pictures being leaked are dated February 2018. Throughout that time period Binance experienced applied a 3rd-social gathering company to handle the substantial quantity of KYC requests.

Binance says there are “inconsistencies” with the information remaining shared on social media to the data it retains in its methods to be compliant with KYC rules.

The exchange claims there is no evidence to propose that any KYC visuals have been taken from Binance‘s techniques. The illustrations or photos becoming shared on Twitter and Telegram do not have the digital watermark that is imprinted by Binance.

Binance says it’s at the moment investigating with the supplier to locate additional facts about the information leak.

CZ has denounced people that are more sharing the leaked illustrations or photos, saying they are supporting and providing unnecessary consideration to the predicament.

The reward is currently being presented to anybody that is in a position to present Binance with facts that identifies the extortionist, and can help the trade go after legal motion versus them.

This is a acquiring story.

Posted August 7, 2019 — 10:26 UTC



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