Binance releases latest update on KYC ‘leak’ episode; points out discrepancies between leaked images & KYC data

Binance is no stranger to cryptocurrency hacks and scams, with $40.7 million (700 BTC) being stolen from the exchange just recently. While Changpeng Zhao, the exchange’s CEO managed to alleviate concerns with informed communication, the exchange was also targetted by a leak of KYC documents.

Today, Binance released an official blog post titled “Update & Action Response: Third-Party Vendor KYC Matter,” detailing the measures taken by the company over the past two weeks since the leak. Previously, Binance had stated that an unidentified individual had threatened and demanded 300 BTC as ransom for the 10,000 photos that bear similarity to Binance KYC data, a claim that was investigated for legitimacy and relevancy. Maintaining this stand, the latest update highlighted,

“The latest evidence of this investigation indicates that some of the leaked images overlap with images that were processed by a third-party vendor, which Binance contracted a few times between early December 2017 and late February 2018.”

Binance, while remaining adamant about its fortified security measures, stated that some of the leaked images overlapped with images that were processed by a third-party vendor, a vendor Binance had contacted a long time back. Further, there were multiple photoshopped or otherwise altered images “which do not match the KYC images in our database and are being accounted into the comprehensive investigation.”

Binance also clarified that every image processed through Binance for KYC purposes is embedded with a concealed digital watermark, which was notably absent from all of the leaked images. While Binance’s update on the KYC leak supports its claim of being falsified, Binance announced,

“We are actively contacting all potential victims with our guidance on privacy protection and restitution, and highly recommend affected users to apply for new identification documents in their respective region.”

Maintaining its support for investors, Binance also promised to compensate affected users with a lifetime Binance VIP membership, “including preferential trading fees, support, and more services.”