Cryptocurrency Investor Loses $50,000 on Binance with No Recovery Options
On Binance there is a crypto investor who has lost about $50,000, and yet this platform is considered as the largest crypto coin exchange in the market. The sad part for all this is that the investor will not be in a position to get this funds back.
It Was A Hacked Email And No Support
In early June of this year the cryptocurrency subreddit, an investor detailed the process that had led to his account that had $50,000 worth of bitcoins not being accessible. The investor has an online alias of BeanThe5TH claimed that his account was initially hacked, this when an unauthorized person was able to get access of his account, this is through the mobile or sim card network.
They were able to obtain the access through impersonation and even phishing through the customer support of the mobile service provider he was using.
The hackers were able to penetrate almost every account and also every platform that was linked to the mobile number, this is including Facebook, Twitter, email and the most important one being the crypto exchanges. With the hackers having access to the Binance and Hotmail accounts it enabled them to withdraw two Bitcoins at the time.
This all happened just before the investor was able to release a statement on the matter on the cryptocurrency subreddit, where he was urgently requesting the Binance support to block his account to prevent any further leakage of his funds. The support department responded to the investor stating the account was blocked and should contact the platform via the ticket system that has been initiated.
But this was not enough for the investor because the hackers had access to this email that has been linked to his account. Which means they could easily contact support and initiate a ticket that will recover the funds in his account. Thus, this would lead the investor to lose additional funds.
A month has passed since the investor filed his request for the platform to lock his account and find ways they can streamline for the customer to recover his funds. But the Binance platform has been reluctant to process any kind of support that will not be sent to the email that has been linked to the account. And since then the investor has not been able to access his locked account.
But this is not all as Microsoft also refused to recover the Hotmail account even after he was able to verify his ownership. Currently, both accounts in Hotmail and Binance have been locked permanently with no way for the investor to recover it unless with the help of the Binance platform.
The Incident Has No Solution To Take Away
The current solution cannot be resolved unless the Binance platform actually gets involved in the process of recovering the account and hopefully the funds, which at the moment seems to be highly unlikely. But one takes away from this incident is that it is not as secure to use mobile numbers as your central two-factor authentication.
Because it is clear that fraudsters are able to impersonate the current owner of the mobile, thus, it makes it very easy for them to gain the needed access with the use of customer support.