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Binance unveils new details on the recent hack attack

  • Binance blames KYC vendor on data leak.
  • The cryptocurrency exchange will provide compensation for affected users.

The world’s leading cryptocurrency platform Binance provided the results of the ongoing investigations into the recent hack attack that affected about 60,000 users.

Binance today updated on the alleged leak of its customers’ KYC information, saying that although its probes are still ongoing, the cryptocurrency exchange will compensate users who fell victim to the hacking scandal with a lifetime Binance VIP membership.

The Exchange believes that the KYC (Know Your Customer) service provider is liable for the data leak. The company offers the victims of the hacking scandal a lifetime Binance VIP membership as compensation. The VIP status unlocks access to trading fee discounts and preferential services.

While this decision is meant as a gratitude to the customers, Binance does not admit its fault in the data leak. The latest probe revealed that images released by the hackers overlap with the data processed by KYC vendor that corked for Binance between early December 2017 and February 2018.  

“During our review of the leaked images, there were multiple photoshopped or otherwise altered images which do not match the KYC images in our database and are being accounted into the comprehensive investigation. In addition, every image processed through Binance for KYC purposes is embedded with a concealed digital watermark, which was notably absent from all of the leaked images,” the cryptocurrency exchange explains in the blog post.

Also, earlier Binance CEO Changpeng Zhao questioned the authenticity of information as the leaked materials lack a digital watermark. that is used for the internal data. It means that there are no direct proofs that the data comes from the exchange itself.

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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