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Crypto trader loses $70,000 on Binance: Community criticizes response

TL;DR

  • Crypto trader loses $70,000 on Binance due to hacker; community criticizes slow response.
  • Binance CEO promises investigation after trader’s funds were stolen, but the community remains skeptical.
  • The incident highlights the need for better security measures in cryptocurrency exchanges to protect users’ funds.

A crypto trader, known by the pseudonym DoomXBT, has reported a distressing experience on the Binance exchange, resulting in the loss of $70,000 in digital assets to a hacker. The incident, which occurred on February 29, has sparked criticism from the community regarding the exchange’s response to the security breach.

Trader’s troubling experience

DoomXBT took to social media to share the events leading up to the losing funds on Binance. The trader described experiencing unusual activity on their account, including unexpected trade orders and loan processing, indicating a possible compromise. 

Despite having two-factor authentication activated, the account’s security was breached, leading to the unauthorized withdrawal of crypto assets.

Before withdrawing, the hacker reportedly exchanged the trader’s assets for Binance Coin (BNB) tokens. Despite the trader’s efforts to contact Binance support upon noticing the suspicious activity, the funds were transferred out of the account when assistance was sought.

Community response and criticism

Community members have voiced dissatisfaction with Binance’s handling of the situation, particularly regarding the lack of timely intervention to freeze withdrawals. Many argue that such measures could have prevented or mitigated the extent of the loss.

Critics also aimed at Binance CEO Richard Teng’s response to the incident, with some deriding his apology and promises of investigation as insufficient. Teng assured the affected trader that a security task force was already investigating the matter and pledged to provide updates on any developments.

Exchange’s response and investigation

In response to the community’s concerns, Binance’s social media and community leads affirmed that the case had been escalated and was under investigation. However, some users remain skeptical of the exchange’s commitment to addressing security issues promptly and effectively.

CEO Richard Teng reiterated the exchange’s dedication to security and expressed regret over the incident. He promised to keep the affected trader informed of any progress in the investigation, emphasizing the seriousness with which Binance takes such matters.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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