Binance Security Incident and Loss of Crypto Funds

Yi He, the co-founder of Binance, a popular cryptocurrency exchange, addressed allegations surrounding a significant security breach resulting in the loss of $1 million in cryptocurrency from a single user account. He clarified that the breach occurred due to the user's computer being compromised rather than a flaw in the platform's security. After the breach, the hacker was unable to withdraw funds and resorted to selling the victim's coins, leading to trading losses. On the same day, a crypto trader named Nakamao claimed to have lost their entire account balance through 'counter-trading' without the knowledge of their Binance account password or 2FA instructions. Nakamao detailed that the hacker manipulated their account by holding their web cookies hostage, executing actions that resulted in substantial losses. The trader mentioned significant leveraged bets against a counterparty as a key factor in the substantial financial losses. In response, Binance's customer service explained that a hacker stole the account login status through a plugin, impersonated the user, and conducted unauthorized transactions. Despite freezing Nakamao's account promptly after the request, the hacker had already completed a series of leveraged trades. Binance acknowledged the security breach but attributed the asset loss to the installation of malicious plug-ins on the user's devices, disclaiming any liability for such incidents. Nakamao disagreed, asserting that Binance was aware of the malicious plugin but did not act promptly to prevent the account breach. He also highlighted the importance of user responsibility in safeguarding login devices to prevent compromises. Yi He emphasized the risks of using cookie plugins to save login information, cautioning users against compromising their security for convenience. Yi He, a former Chinese TV host and Binance co-founder, plays a prominent role in the crypto world alongside other female leaders, such as Bitget's CEO, Gracy Chen. In a previous statement, Yi He mentioned her spouse, Binance's former CEO Changpeng Zhao, receiving a favorable verdict in U.S. money laundering charges.