Binance has denied allegations of a recent data breach and assured users that their accounts remain secure. The controversy arose when a hacker claimed to have access to a law enforcement request system account named “KodexGlobal.” This account purportedly allowed the hacker to issue emergency data requests (EDRs) to crypto and social media platforms, including Coinbase, Binance, and Chainlink.
According to reports, the hacker was offering access to this account on a cybercrime forum for a fee, enabling them to make EDRs for various services such as LinkedIn, Discord, Tinder, and others.
It’s believed that the hacker gained entry into law enforcement systems by exploiting credentials obtained from Infostealer Infections, often originating from compromised computers owned by law enforcement officers. Over 50 credentials for Google’s law enforcement system have been identified as stemming from various Infostealer infections.
Following these developments, a user claimed that Binance users’ Know Your Customer (KYC) data was being offered for sale on a dark web marketplace, seemingly linked to a previous GitHub leak.
A Binance spokesperson, while acknowledging the potential for compromised law enforcement accounts, assured users that the platform has a comprehensive documentation process and maintains continuous monitoring for any signs of compromised accounts.
In December 2023, a hacker reportedly attempted to sell access to Binance’s law enforcement portal through KodexGlobal, with compromised credentials allegedly linked to law enforcement officers in Taiwan, Uganda, and the Philippines. Binance acknowledged awareness of such access but did not confirm any system breaches, user data compromises, or crypto thefts at that time.
It’s worth noting that in November of the previous year, a hacker managed to steal $27 million worth of Tether (USDT) from a wallet associated with the Binance deployer, highlighting security challenges in the crypto industry.