A UK judge has reportedly ordered a cryptocurrency exchange Binance to identify hackers and freeze their accounts after one of its users claimed to have been the victim of a $ 2.6 million hack.
Binance Ordered To Help Recover Funds Allegedly Stolen In Hack
London’s Supreme Court has ordered global cryptocurrency exchange Binance to identify hackers and freeze its accounts after one of its users, Fetch.ai, claimed to be the victim of a $ 2.6 million hack, Reuters reported on Friday.
The judge accepted requests from the artificial intelligence (AI) company for Binance to identify the hackers and track and capture the alleged stolen assets, the judgment released this week revealed.
Fetch.ai, incorporated in England and Singapore, is developing AI projects for blockchain databases. The company claimed that its Binance account was hacked on June 6th. “Unable to dispose of the assets due to account restrictions, they allegedly sold them to a tied third party with a fraction of their value in less than an hour,” the news transmitted.
A Binance spokesman said, “We can confirm that we are assisting Fetch.ai in the recovery of assets,” elaborating:
Binance routinely freezes accounts identified as suspicious activities in accordance with our security policies and a commitment to ensure that users are protected while using our platform.
Syedur Rahman, a partner of Rahman Ravelli, who represents Fetch.ai, told Reuters that Binance had notified his client of unusual activity on his account and had already frozen a sum. Noticing that he believes Binance will carry out the court orders, Rahman opined:
We need to dispel the myth that cryptocurrencies are anonymous. The reality is that with the right rules and applications they can be tracked, tracked and retrieved.
A growing list of regulators worldwide has issued warnings against Binance, including the UK’s Financial Conduct Authority (FCA). The British regulator issued a consumer warning in June, stating that no entities in the Binance Group own “any form of British authorization, registration or license to conduct regulated activity in the UK.”
Binance said it is committed to complying with local regulations wherever it operates, and has expanded its international observation team and advisory board. The head of the exchange, Changpeng Zhao (CZ), recently said that his company wants to “be authorized everywhere” and become a financial institution.
He also revealed that Binance was looking for a CEO with a strong executive background. Last week, former U.S. regulator Brian Brooks resigned as CEO of Binance USA.
What do you think of the British court ordering Binance to identify hackers and freeze their accounts? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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