Binance and Kraken Had Previously Blocked Hack Attempts Mirroring Recent Coinbase Breach

Two crypto behemoths, Binance and Kraken, had reportedly blocked hack attempts mirroring the recent Coinbase breach.

Crypto behemoths Binance and Kraken had reportedly blocked hack attempts mirroring the recent Coinbase (NASDAQ:COIN) breach, a report by Bloomberg revealed on Monday.

What Happened: Both exchanges managed to avoid customer data exposure, even as crypto platforms face mounting cyber threats amid rising asset prices, the report said.

At Binance, scammers contacted customer support agents with bribe offers and Telegram handles for further communication. But the exchange uses AI-powered bots to detect bribery attempts in multiple languages and shut down conversations before escalation, the report said.

The report adds that like many major platforms, Binance restricts access to sensitive customer data unless a support session is initiated by the user.

The attacks followed the same pattern as the one disclosed last week by Coinbase.

Hackers exploited the firm’s internal systems by convincing a handful of customer agents to leak data. That data, including names, addresses, IDs, banking info, and account balances, was later used in a failed extortion attempt.

Coinbase immediately terminated the employees involved and referred the case to law enforcement. In a filing with the Securities and Exchange Commission, the company estimated the breach could cost up to $400 million. It also pledged to reimburse customers who were defrauded.

The breach affected data tied to less than 1% of the firm’s monthly transacting users, and the attackers then attempted to extort the company for $20 million.

Shortly after the Coinbase attack took place, reports came up of a failed kidnapping attempt targeting the family of Paymium’s CEO in Paris, which raised alarms across the crypto industry, intensifying fears over physical threats tied to public crypto exposure.

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Why It’s Important: The report highlights the increasing sophistication of cyber threats facing the crypto industry. Platforms are investing heavily in security measures to mitigate these threats and protect user funds and privacy.

The report mentions that Kraken also encountered a similar hack attempt, where attackers targeted customer support agents with the aim of gaining access to user data. However, the exchange’s security protocols thwarted the attack, and no customer data was compromised.

The seamless blocking of these hack attempts is a testament to the robust security measures that major crypto exchanges have implemented to safeguard their platforms and users.

As the industry continues to grow and evolve, the battle against cyber threats will become even more crucial. Platforms like Binance and Kraken serve as prime examples of the vigilance and technological advancements necessary to stay ahead of attackers and maintain the trust of their users in the cryptocurrency space.