Friday, September 17, 2021

UK High Court orders Binance to investigate the $2.6 million hack.

The Takeaway:

Binance has received orders from the UK High Court to take steps against hackers who reportedly stole $2.6 million worth of crypto.

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According to the Reuters report, Fetch.ai, an artificial intelligence lab based in Cambridge, has requested that Binance identify and track fraudsters who hacked into their cryptocurrency accounts back on June 6. Account restrictions prevented the hackers from removing the assets in question. As a result, they reportedly sold those assets to a third party in the space of an hour. Binance has been under regulatory scrutiny this year. 

 

Fetch.ai requested Binance freeze the hackers’ accounts.  

Fetch.ai also requested the crypto exchange Binance freeze the hackers’ accounts on the exchange. A High Court judge subsequently granted the company’s requests. Binance has indicated that they will comply with the court’s orders, according to reports. However, the claimants will not be able to seek a recovery order until they prove they have been victims of fraud. The UK high court order comes amid a turbulent period for Binance. The crypto exchange has recently come under a lot of scrutiny from financial regulators across the world for several reasons. 

 

Binance continues to face regulatory scrutiny. 

Financial regulators of several countries, including the UK, have warned users against Binance, while others have enforced outright bans. At the beginning of July, two leading British banks restricted customer access to Binance. First, Barclays called a halt to transfers of customer funds to the exchange. Later, Santander UK blocked payments to Binance altogether a couple of days later. Both financial institutions’ actions were responses to a consumer warning issued by the UK’s financial regulator, the Financial Conduct Authority (FCA). As reported earlier, FCA maintained that Binance was not authorized to conduct cryptocurrency business within the UK. Italian regulators also issued a similar warning later in July. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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