Binance Law Enforcement Panel Access Sold for $10K Crypto
In a significant security lapse, an anonymous user named “Miembro” has listed Binance‘s law enforcement request panel access for sale on Breach Forums. The asking price is $10,000 in Bitcoin or Monero, a development that raises serious questions about the safety of sensitive data within the cryptocurrency exchange.
Compromised Credentials Lead to Unauthorized Access
Under the moniker “Miembro,” the seller claimed on December 14 that the access offered is exclusively used by law enforcement, promising unlimited requests with a response time ranging from three to seven days. The credibility of these claims was initially uncertain, but subsequent investigations indicated a more severe situation.
Hudson Rock researchers found that the access was obtained through compromised credentials, reportedly belonging to law enforcement officials. These include Taiwanese Criminal Investigation Bureau officers, the Uganda Police Force, and the Philippine National Police’s Anti-Cybercrime Group. It appears that malware-infected computers led to this security breach, highlighting a critical vulnerability in the system.
Further investigation revealed that Kodex, a third-party service, is used by Binance to validate law enforcement requests. The breach indicates that the hackers could have exploited this system using the obtained credentials.
Binance Under Scrutiny Amidst Legal Challenges
This security incident comes at a tumultuous time for Binance. The platform is currently grappling with regulatory issues in the Philippines, where it faces a potential ban by the Securities and Exchange Commission for operating as an unregistered exchange.
Additionally, the United States court has recently ordered Changpeng “CZ” Zhao, Binance’s former CEO, to pay $150 million for violating the Commodity Exchange Act and Commodity Futures Trading Commission regulations. Simultaneously, Binance must pay a substantial $2.7 billion to conclude the CFTC enforcement action.
This combination of legal and security challenges puts Binance in a precarious position. The sale of access to its law enforcement request panel not only undermines the trust of its users but also raises significant concerns about the integrity and security of the cryptocurrency exchange’s operations.
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