London’s High Court has ordered Binance, one of the world’s largest crytocurrency exchanges, to identify hackers and freeze their accounts after one of its users said it was the victim of a $2.6 million hack.
In a judgment made public this week, a High Court judge granted requests by artificial intelligence (AI) company Fetch.ai for Binance to take steps to identify the hackers and track and seize the assets.
For the latest headlines, follow our Google News channel online or via the app.
While involving a relatively small sum, the case is one of the first public ones involving Binance and will be a test of the English court system’s ability to tackle fraud on cryptocurrency platforms.
“We can confirm that we are helping Fetch.ai in the recovery of assets,” a Binance spokesperson said.
“Binance routinely freezes accounts that are identified as having suspicious activity occurring in line with our security policies and commitment to ensuring that users are protected while using our platform.”
Binance, which has an opaque corporate structure, has faced intense regulatory scrutiny amid a worldwide crackdown on cryptocurrencies over concerns that such exchanges could be used for money laundering or to allow consumers to fall victim to scams or runaway bets.
Binance has said it is committed to complying with appropriate local rules wherever it operates and has expanded its international compliance team and advisory board.
“We need to dispel the myth that cryptoassets are anonymous. The reality is that with the right rules and applications they can be tracked, traced and recovered,” Syedur Rahman, a partner at Rahman Ravelli, which is representing Fetch.ai, told Reuters.
Fetch.ai, which is incorporated in England and Singapore and
develops AI projects for blockchain databases, alleges fraudsters hacked their way into its cryptocurrency accounts on the Binance exchange on June 6.
Unable to remove the assets because of account restrictions, they allegedly sold them to a linked third party at a fraction of their value in under an hour.
Rahman said Binance, which had notified Fetch.AI of unusual activity in its account, had already frozen a sum and had indicated it would comply with the orders. The claimants will have to prove they are victims of fraud before seeking a recovery order.
Hacker dubbed ‘Mr White Hat’ to return entire $613 mln in stolen crypto fortuneA firm specializing in transferring cryptocurrency said Thursday that a hacker they are calling “Mr White Hat” was giving back all $613 million in ... World News
Messi joins crypto craze, Paris St Germain signing fee includes fan tokensSoccer star Lionel Messi’s signing on fee at Paris St Germain includes some of the French club’s cryptocurrency fan tokens, in the latest big name ... Life
Cryptocurrency platform Poly loses estimated $600 million in cyberheistA cryptocurrency platform has lost an estimated $600 million in digital tokens after one of the sector’s biggest ever hacking attacks, according to ... Technology
Polish police HQ staffer steals electricity for crypto-mining operationPolish police on Friday said they had uncovered a bitcoin mining operation in their own headquarters in Warsaw.“A civilian employee, not a police ... Life
British police seize record $408 million haul of cryptocurrencyBritish police have seized record hauls of cryptocurrency totaling $408 million as part of an investigation into money laundering after organized ... World News
Britain bans Binance in latest cryptocurrency crackdownBritain’s financial regulator has ordered Binance, one of the world’s largest cryptocurrency exchanges, to stop all regulated activity and issued a ... Financial Markets
China’s crypto crackdown expected to spur overseas miningChina’s crackdown on the cryptocurrency industry is expected to spur miners to uproot their operations and head abroad.The exodus is seen occurring as ... Technology