The London’s High Court has ordered crypto exchange Binance to trace and freeze digital currencies hacked from the accounts of one of its clients called Fetch.ai. The court is demanding that they take every measure possible to stop this illegal activity which could be devastating for future business endeavors.
The cryptocurrency company Fetch.ai has recently fallen victim to a hacker who stole $2.6 million in cryptocurrencies from the company’s Binance accounts and sold them on June 6 for significantly less than their value, leaving it with severely damaged finances that could be difficult to recover.
The UK court is taking action to protect the integrity of its cryptocurrency market. They have demanded that Binance identify which coins were stolen and freeze any accounts holding them until they are safe again.
Binance has confirmed they are helping Fetch.ai in the recovery of assets, but could not disclose any information on what this entails or how it affects Binance’s policy.
Binance is committed to ensuring the safety of its customers and regularly performs security checks on all users in order to identify any potentially fraudulent behavior.
Suspicious activities are identified by monitoring for account balances increasing at a rate higher than normal through transactions conducted without other identifiable sources, abnormal trading volume indicating market manipulation or price volatility, repeated withdrawals exceeding limits set forth by the Terms & Conditions agreement as well as adding unusual IP addresses which could indicate bot usage from several locations.
Fetch.ai, the mastermind behind AI projects for blockchain databases and cryptocurrency exchanges alike to identify the perpetrators of hacks on their systems, confirmed its recent cooperation with Binance in tracing those who hacked them earlier this month.
In an official statement recently issued by the tech giant, they said, “We have been working closely with Binance and local enforcement to obtain details about the hacker… [and] issuing a court order for the release of this information is a standard process,”
The trading platform Binance, which is the world’s most popular cryptocurrency exchange by volume according to Coinmarketcap.com and number one overall in monthly trade volumes on a global level, has been facing regulatory troubles lately.
In recent months’ regulators have flagged its operations as “high-risk environments for consumers” due to lack of AML controls and potential money laundering scams that are rampant among crypto traders with no KYC verification required at all levels of their service offerings! Recently multiple government agencies around the globe.
The UK’s Financial Conduct Authority (FCA) had earlier issued a statement regarding their suspicion over one particular publicly traded subsidiary of Binance but the giant exchange said the claimed subsidiary doesn’t operate within English jurisdiction.
Meanwhile, stating its jurisdictional grey area, a UK High court judge notes, “Binance Holdings Limited, who, as I have explained, are not registered in, and apparently have no presence in, the jurisdiction of England and Wales.”