Binance Users Loses $13,000 in BTC After Being Stolen By Hacker
Everyone says that cryptocurrency exchanges are very unsafe because hackers could easily steal the funds from them. And indeed, just some days ago, the crypto exchange Coinrail has been hacked. Since the beginning of the year other two or three important platforms suffered attacks.
But even when an exchange calls itself the safest on earth, it is possible to suffer and lose all the funds you have there. This is what happened to a Reddit user known as BeanThe5th. In a thread in Reddit, he said that all his accounts, including emails, twitter, and crypto exchanges, have been hacked by an anonymous attacker.
In his Binance account, they were able to steal 2 BTC (which is Binance daily limit), but it could be possible for them to steal the next Bitcoins during the next days. The user said that in his account he had $50,000 dollars and that he needed help from Binance to block it immediately.
He wrote on Reddit:
“I have been impersonated and sim swapped, they hacked my emails, twitter, facebook, exchanges, literally everything including binance which they stole 2 btc (daily limit) from today and will steal more if the account isn’t frozen by tomorrow.”
Another user, Jage_Binance (Moderator for the r/Binance Subreddit) was able to block the account that the user was requesting.
The hacker was able to pass the two-factor authentication using a ‘SIM swap’ method, that requires criminals to pretend to be the targeted individual. In this way, the criminal had to contact with the phone provider related to the user and request all the information necessary to bypass the two-factor authentication.
Of course, the attack required an important amount of planning prior the attack’s execution, and was not just a simple hack.
It is always advised to have such an important amount of money saved in a cold storage wallet or a hardware wallet like the Ledger Nano. In this way, it is possible to reduce the risk of hacking almost to zero.
Hardware wallets are very safe devices because all the information that they store cannot be accessed from the computer, even if it is connected via USB. If it is not possible for users to have a hardware wallet, a paper wallet is recommended.
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