Binance, Coinbase, Kraken Asked For Reveal User Data In Hack Investigate

Snorlax

Dec 1, 2022•2 min read

Binance, Coinbase, Kraken Asked For Reveal User Data In Hack Investigate

To help find stolen assets, six exchanges have been required to provide user information.

The order is one of the first applications of a new rule in the UK that will aid in tracing assets stored abroad in cases of cybercrime.

In order to trace $10.7 million in funds taken from an undisclosed UK-based exchange in 2020, six exchanges, including Binance, Coinbase, Luno, and Kraken, will be ordered to disclose user data.

According to Financial Times, a court judgment requiring the disclosure of the data was issued by London's High Court. Two of the six involved exchanges were unnamed.

The anonymous exchange, which has remained anonymous in order to not "tip off" the hackers, has already been able to track $1.7 million of the stolen assets.

The sum in question was deposited in cryptocurrencies like bitcoin, XRP, ether, and tether into 26 accounts on the exchanges. According to FT, it is one of the first applications of a new rule in the UK to aid in tracing assets in cyber fraud cases, even when the companies storing the information are situated abroad.

In the country, cryptocurrency fraud is on the rise. According to police unit Action Fraud, there were a third more reported occurrences of cryptocurrency fraud between September 2021 and September 2022.

Despite the widespread misunderstanding that cryptocurrencies on distributed public ledgers are anonymous, hackers risk being identified because most important exchanges have KYC procedures. This can include providing identification documents and biometric verification.

Exchanges also agree to submit data that is unrelated to hacking as requested. In October, Coinbase informed UK users that if they received more than £5,000 in cryptocurrencies in the 2019/2020 tax year, it will disclose their information with Her Majesty's Revenue and Customs (HMRC).

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