Cryptocurrency exchange Binance must identify hackers and freeze their accounts after one of the company’s users said it was the victim of a hack worth $2.6 million, under the terms of a High Court of London order, per Friday (August 13) reports.
The court’s judgment granted multiple requests by artificial intelligence (AI) company Fetch.ai for Binance to ID the hackers and seize their assets.
“We need to dispel the myth that cryptoassets are anonymous,” Syedur Rahman, a partner at Rahman Ravelli, which is representing Fetch.ai. “The reality is that with the right rules and applications they can be tracked, traced and recovered.”
Fetch.ai emailed the following statement to PYMNTS in light of the announcement: “Fetch.ai’s account on Binance was hacked and a sum of $2.6 million was wrongfully traded by an unidentified hacker. In order to freeze the wrongfully traded assets and initiate [an] investigation against the hack, Fetch.ai submitted a formal court order requesting Binance to assist in this matter. Fetch.ai is working closely with Binance and local law enforcement to identify the hacker and recover the wrongfully traded funds. In compliance with legal proceedings and due to the sensitive nature of the matter, Fetch.ai will keep the community posted on the status of the issue once investigation and case is complete.”
Fetch.ai, which is incorporated in England and Singapore and develops AI projects for blockchain databases, said hackers found their way into the company’s cryptocurrency accounts on Binance’s exchange on June 6.
“We can confirm that we are helping Fetch.ai in the recovery of assets,” a Binance spokesperson said. “Binance routinely freezes accounts that are identified as having suspicious activity occurring in line with our security policies and commitment to ensuring that users are protected while using our platform.”
Binance has been in the crosshairs of regulators as part of a global crackdown on cryptocurrencies because some believe the digital coins could be used for money laundering or to trigger consumer scams or runaway bets.
Rahman said that Binance, which alerted Fetch.ai about the alleged “unusual activity” on its account, froze a sum and said it would comply with the High Court’s ruling. Fetch.ai will have to prove they are victims of fraud before seeking a recovery order.
Related: Binance Shut Out Of Italy
Binance has come under scrutiny recently for its compliance standards. Per a July report, Italian market watchdog Consob has said that Binance has been shut out of activity in Italy.
Per a spokesperson, these actions allegedly had no impact on Binance services as the company did not work out of Italy. However, the company plans to collaborate with regulators.
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