Trust in companies for access to various services is leading to growing vulnerability in data security. This is particularly the case at Binance, the largest cryptocurrency exchange platform.
Dependence on Corporations: Increased Data Security Risks
As the world becomes increasingly digitized, individuals are forced to entrust their data to companies in exchange for access to various services. However, the dynamics of trust raise concerns about data security. The methods used to secure this data have not always been infallible.
Despite crypto ethics aimed at eliminating the need for trust, centralized platforms facilitating the conversion of assets into fiat currency still require users to submit sensitive data. In doing so, they expose themselves to the same risks as any other service company.
Allegations of Data Leakage at Binance: Concerns Within the Crypto Community
A recent example highlighting this vulnerability, allegations of a data leak at Binance, have caused concern within the crypto community. It should be noted that Binance is the world’s largest cryptocurrency exchange platform. These concerns point in particular to the potential risks of identity theft and loss of user assets.
On January 31, 404 Media reported that sensitive Binance information, including internal code and passwords, had been available on a public GitHub repository for months. This data was only recently removed after a takedown request from Binance citing. The latter cited a “significant risk” to the company and “serious harm” to users.
Binance’s denial: “Outdated” and “Negligible Risk” data
Although there is no evidence that this data has been used for malicious purposes, Binance has attracted attention. In particular, the platform downplayed the potential risks in its comments to the press. It claimed that the data was “outdated” and presented a “negligible risk”. Binance thus justified the request for withdrawal to avoid any confusion among users.
On February 4, a dark web advertisement for Binance users’ KYC data circulated online. The ad clearly confirmed users’ fears. However, Binance issued a statement denying a leak, claiming that “users’ accounts remain secure.”
Theme repetition?
This wouldn’t be the first time that the security of Binance users’ data has raised concerns. In January 2019, a hacker known as ExploitDOT claimed to have stolen Binance users’ KYC information. Only, the platform clearly denied the existence of a data breach.
In August 2019, Binance issued another statement to dispute an alleged data breach. Yet selfies submitted by users as part of KYC requirements were circulating online.
In Today’s Context of Data Vulnerability
Recent reports of hackers accessing the law enforcement systems of large organizations, such as Google, raise further concerns. These concerns relate to a similar vulnerability in platforms such as Binance and Coinbase. Users of centralized platforms cannot eliminate the risk of data leaks. While decentralized finance (DeFi) offers an alternative, it is not free from security challenges that have resulted in the loss of billions of dollars in user assets. These recent debates on data security at Binance highlight the risks incurred by users. Users are concerned about the data they share with companies.
