Binance Cryptocurrency Exchange Refuses to Pay Blackmailers Over a Possible Data Breach

A blackmailer attempted to extort $3.5 million from the Binance cryptocurrency exchange, stating they would release confidential KYC (Know Your Customer) data. Binance has refused to pay the demands and is working with law enforcement to track down the cyber criminals.

First, there is some question if the blackmailer even has data from Binance. Some of the sample data was not consistent with data formats held by Binance but might be from a KYC vendor they had previously used. So, there is still a question if Binance was the victim of a data breach. I am sure in the next few weeks more details will emerge on those factors.

What interests me the most is that Binance REFUSED to be victimized and pay the extortion! That is truly AWESOME!

In today’s market, especially with Ransomware and Distributed Denial of Service (DDoS) attacks, many victims choose to pay the criminals. A great analysis by Cyentia Institute estimates a little over 40% of victims pay ransomware extortion!

Government departments are big targets now as many have paid ransoms in the past. The cities of Riveria Beach and Lake City Florida collectively paid over a million dollars and Jackson County Georgia paid $400k all this year.