Stolen BTC from the $60 Million Zaif Hack was found on Binance
Earlier this months, a major Japanese crypto exchange Zaif experienced a horrible hack with 6.7 billion yen ($60 million USD) in loses. Soon afterwards, blockchain forensic firm Blocktrace has launched an announcement to disclose that some of the stolen bitcoins are on Binance.
BlockTrace listed a portion of Binance deposit addresses and indicated that, after stolen the money, the hackers are breaking up the fund into smaller amounts to hide the origin and prevent tracking. The firm suspects that the hackers seems like to generated a new Binance deposit address after each 1.99 BTC deposit.
Shaun MaGruder, founder of Blocktrace also concluded that “I can confirm that the hack started on the 14th as that’s when I saw the withdrawal of 5,966 bitcoin” in an interview with Bitcoin Magazine.
He also criticized Binance for its lax know-your-customer (KNY) process, “Even though you have to upload your ID when verifying account, they are not making sure it is actually you”.
Bitfinex, one of the leading cryptocurrency exchanges, also tweeted that, they believe Binance would help the hackers laundering the stolen funds.
As of press time, Binance has not reply to these serious allegations. While BlockTrace didn’t mention if the hackers only targeted Binance or there is any other crypto exchange involved in as well.
The $60m Crypto Hack also draws much attention from the Japanese financial watchdog. The Financial Services Agency (FSA) has launched an official investigation into Zaif on Monday.
It was also reported that, the FSA has issued two business improvement orders to Zaif in 2018 (one in March, the other in June) due to its possible system failures and fraudulent withdrawals.
Unfortunately, Zaif failed to comply with the FSA’s business improvement orders and suffered heavy losses for the hack attacks.