Data breaches and hacks are nothing new in the cryptocurrency world. Many exchanges and service providers have been a target for criminals for as long as most people can remember. Binance has seemingly become one of the new targets as of late, albeit it remains unclear if the exchange itself is to blame for this incident. The 300 Bitcoin ransom, however, is a very real demand which will need to be addressed accordingly. Paying the ransom is not the best course of action, though.

The Binance “Incident”

According to the company’s recent blog post, there has been a KYC Leak of sorts reported by various cryptocurrency media outlets. Someone – or a group of individuals – managed to obtain passports and personal information of clients from across the world. This information looks similar to Binance’s KYC data, although there is still no clarity as to whether this is the real information. If the information is legitimate, there will be a lot of kinks to work out. For now, however, the company is still investigating the matter and will keep its users updated.

Until proven otherwise, it seems rather safe to say this information was not obtained from Binance’s KYC database by any means. Several inconsistencies and errors have been noted based on the information the culprit(s) shared through social media and various media outlets around the world. The company has also noted there has not been a breach of their own systems, which could indicate some information was leaked by a third-party service provider. Even that aspect, however, has not been officially confirmed at this time. As such, it might be best to look at any claims of Binance’s KYC data being stolen as a baseless rumor, for the time being. 

Third-Parties Pose Systemic Risks

While it is understandable for Binance to rely on a third-party service provider when dealing with KYC data, it also poses a significant problem. As more parties gain access to sensitive user data, the risks of exposure to the wrong sets of eyes become all the greater. Given the waves of data breaches, hacks, and other illicit encounters, any and all companies and service providers pose a genuine threat. It seems the company’s decision to explore this particular option could have backfired, although it is still too early to draw any real conclusions.

Demanding 300 Bitcoin

What is even more intriguing is how the hacker – or hackers – currently demand a 300 Bitcoin ransom to not reveal more information to the public. Surprisingly, the culprit is not intent on even showcasing they have more details, which might indicate the hack or breach isn’t as extensive as originally assumed. By actively demand a 300 Bitcoin fee, the criminals are seemingly trying to get rich quick on the back of the world’s most popular cryptocurrency exchange. For now, there is no indication the company is even remotely willing to honor this demand, which is a positive sign as far as this entire mess is concerned. 

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.