UK courts orders Binance to find hackers and seize assets
A British court has ordered Binance to freeze $2.6 million in crypto assets allegedly stolen in a hacking incident that occurred four months ago.
- London High Court orders Binance to seize hacker’s assets
- The cryptocurrencies were stolen from the accounts of Fetch.ai.
- Binance spokesperson says that the exchange is helping to recover the stolen assets.
The High Court in London has issued an order to crypto exchange Binance, demanding that they track and freeze the digital currency forcibly taken from one of it’s customers, Fetch.ai.
The court documents made public last week indicate that Fetch.ai lost $2.6 million in cryptocurrencies as hackers accessed its Binance accounts and sold the tokens on June 6 to a linked account for a fraction of their value.
Though the total value of crypto that was stolen is not as great as other heists, the UK court requested Binance to find and freeze any accounts where verified cryptocurrencies were stored.
“We can confirm that we are helping Fetch.ai in the recovery of assets,” a Binance spokesperson said.
“Binance routinely freezes accounts that are identified as having suspicious activity occurring in line with our security policies and commitment to ensuring that users are protected while using our platform.”
Fetch.ai, an AI-focused blockchain database developer, also confirmed the crypto exchange’s cooperation in tracing the perpetrators.
“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 company said in a statement.
Mounting legal pressures
Binance is linked to many regulatory issues of late. Multiple overlapping regulatory agencies around the world have flagged the exchange’s operations, and [some] even took enforcement actions. Earlier, the UK Financial Conduct Authority issued a warning against a local branch of Binance. The crypto-exchange pointed out that the government agency was mistaken about its identity and location.
Meanwhile, the London High Court Judge also pointed out its jurisdictional grey area and stated: “Binance Holdings Limited, who, as I have explained, are not registered in, and apparently have no presence in, the jurisdiction of England and Wales.”