Binance caught in a squeeze: a leak of extremely sensitive internal data, as well as a legal action accusing it of complicity with a terrorist organization. A double crisis with potentially serious consequences.
A compromising data leak
Binance, Exchange juggernaut, has just suffered a data breach on the GitHub platform, revealing highly confidential information about its internal workings. Despite a rapid reaction aimed at limiting the damage, Binance’s crisis management raises questions.
On January 31, the specialized media 404 Media reported that source codes and strategic data from Binance were leaked on GitHub. These compromising documents contain infrastructure diagrams, passwords as well as details on securing user accounts.
Reacting quickly, Binance urgently requested the removal of this data, which it first described as a “major risk”. However, after the takedown, Binance’s position changed, stating that the data was outdated and posed “negligible risk.”
Hamas victims sue Binance
In the wake of the data leak, Binance faces a new salvo. Judith Raanan, an American mother who survived a hostage-taking by the terrorist group Hamas, filed a statement complaint against the platform crypto.
Raanan and other plaintiffs accuse Binance of indirectly funding Hamas’ activities by allowing the organization to use its services.
They rely on an investigation by the US Department of Justice which established that Binance had violated US banking laws, making it easier to circumvent sanctions against organizations such as Hamas.
Furthermore, some American legislators are relaying suspicions of murky links between Binance and Hamas. However, a report from the Elliptic firm published in October 2023 cast doubt.
According to this study, the amount of crypto donations actually received by Hamas was largely overestimated, amounting to only $21,000 over the past month.
“ There is no evidence to support the claim that Hamas received significant volumes of cryptocurrency donations.“
Although these revelations do not exonerate Binance on the merits, they remind us of the need to have precise data before drawing hasty conclusions.
Between data leak and trial for alleged terrorist complicity, Binance’s reputation is seriously damaged. The outcome of these two cases could have serious consequences on the future of the crypto giant.
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