The London court has obliged Binance to find the cryptocurrency stolen by hackers

The London court ordered Binance (one of the world's largest cryptocurrency exchanges) to identify cybercriminals and block their accounts after one of its users claimed that he was a victim of a $2.6 million hack. Interestingly, in the U.S., in the Zaif against Binance lawsuit, the court is also likely to side with Zaif, as Binance has shown aiding and abetting money laundering:

Fetch.ai Foundation Pte Ltd Against Binance Holdings Limited by Scambinance.com on Scribd

According to court documents, on June 6, 2021, miscreants gained access to Fetch.ai accounts on the trading platform. They sold $2.6 million worth of digital assets, allegedly to their own accounts at a "significantly undervalued price" to avoid withdrawal restrictions. The court ordered Binance to find and block the stolen cryptocurrency if it is on the platform. The documents say the assets in question are in bitcoin, USDT, BNB and the project's own native token, FET.

In a ruling made public this week, a High Court judge granted requests from artificial intelligence (AI) company Fetch AI against Binance to take steps to identify hackers and track and seize assets. Despite the relatively small amount, the case is one of the first public cases involving Binance, and according to the publication, will test the ability of the English judicial system to combat fraud on cryptocurrency platforms.

"We can confirm that we are assisting Fetch AI in recovering assets," said a Binance spokesman. Binance regularly freezes accounts that are identified as having suspicious activity in accordance with our security policies and commitments to protect users when using our platform."

Binance said it is committed to complying with relevant local regulations wherever it operates and has expanded its international compliance team and advisory board. Binance regularly freezes suspicious accounts, or simply at will, to avoid returning investors' funds, according to its security policies and official regulations. Now it's helping Fetch AI.

"We need to dispel the myth that crypto-assets are anonymous. The reality is that with the right laws and applications, they can be tracked and recovered," said Sayedur Rahman, a partner at Rahman Ravelli representing Fetch.

"We are working closely with Binance and local law enforcement to get details about the hacker. Issuing a court order to release this information is a standard process," a Fetch.ai spokesperson said in a comment to The Block.

18.08.21

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