In early August, Binance became the subject of speculation after a number of users’ personal information was posted online. One hacker claimed he accessed the exchange’s KYC database and asked for a reward for not publishing the data.
The investigation conducted by Binance revealed that the information in fact came from a security incident in 2018. At that time, a company with which Binance collaborated to process KYC data was compromised.
“The latest evidence from this investigation indicates that some of the published images overlap with images that were processed by a third-party provider, which Binance contracted several times between the beginning of December 2017 and the end of February 2018”,
wrote the team.
VIP Binance accounts as a reward
“From the analysis of the published information it was found that several images were altered with Photoshop programs. These do not match the KYC images in our database. In addition, each image processed by Binance for KYC purposes is embedded with a watermark, which was clearly missing from the published data. “
“We have strong measures in place to protect our clients’ funds and information. We have an updated KYC verification system and AI-based facial verification feature, introduced in 2018, as well as KYC data storage and indexing with sophisticated data security technology upgraded in 2019 ”,
The company has decided to offer potential victims Binance VIP accounts for life on the platform and recommended to users to “request new identification documents in the respective region”.