Binance hits out against FUD after users claim KYC leaks on dark web

There were rising reports that Binance’s user data had been leaked on the dark web.
As a result, sentiment around the BNB token plummeted.

Binance [BNB], one of the largest crypto exchanges in the world, has been going through an onslaught of issues over the last few months.

Adding to its list of problems, Binance recently faced accusations that its user data had leaked onto the dark web.

Binance’s data leaks

Sensitive material related to Binance, including code and internal passwords, were allegedly leaked on GitHub, remaining publicly accessible for an extended period.

The materials, posted by the account “Termf,” comprised code, infrastructure diagrams, internal passwords, and technical information.

Even more worryingly, the exposed code appeared to involve Binance’s security measures, encompassing passwords and multi-factor authentication (MFA).

The leaked information included passwords for systems labeled “prod,” indicating potential use in the live site rather than in development or demonstration environments.

Last week, Binance issued a copyright takedown request resulting in the removal of the data from GitHub, affirming that the exposed material contained the exchange’s proprietary code.

However, things turned murkier as many users pointed out that Binance’s KYC information was being sold on the dark web. Allegedly, users’ basic personal data was also being sold on various networks.

So, don’t get confused regarding Binance, as we are talking about two different things being sold:
1. Basic personal data (name, nationality, phone number); data is real, was confirmed: https://t.co/XZ9jGQpoS2
2. Full KYC data via access to law enforcement systems:…
— CR1337 (@cryptonator1337) February 4, 2024

Damage control

In a bid to dispel FUD surrounding this matter, the Binance team responded to one of the tweets, asserting that their security team had thoroughly evaluated the situation, as is customary for potential threats.

They confirmed the absence of any leaks from Binance systems, assuring users that their accounts remained secure.

The statement also emphasized upon the multiple layers of defense employed, including MFA, biometrics, authenticators, and more.

Our security team has assessed this – as they do all potential threats – and have confirmed there is no such leak from Binance systems. User accounts remains safe.
Accounts are secured through many defenses, including MFA, biometrics, authenticators, etc.
As always, we…
— Binance Customer Support (@BinanceHelpDesk) February 4, 2024

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Notwithstanding, at the time of writing, many in the crypto space remained skeptical of this response. Due to this, Binance’s Weighted Sentiment fell.

This suggested that negative comments surrounding Binance had outnumbered positive ones at press time.