Srp 07

Binance Issues Statement on ‘False KYC Leak’; CEO Comments

Binance has formally denied that it has lost control of some of its user data as rumors continue to swirl around a possible hack.


Hacker ‘Extorting’ Binance

In a statement issued August 6, the major cryptocurrency exchange said it was investigating the claims, which revolve around a hacker demanding 300 BTC in return for withholding traders’ personal data, including passports. 

The threats, which Binance now acknowledge are genuine, came via a Telegram group which has amassed over 10,000 members. 

In the statement, Binance explained that the alleged data set showed “inconsistencies” compared to genuine user information, such as a lack of an internal watermark. It thus remains unknown as to whether any of the documents are genuine or related to Binance.

“We are still investigating this case for legitimacy and relevancy. After refusing to cooperate and continuing with his extortion, this individual has begun distributing the data to the public and to media outlets,” the statement warns.

“…At the present time, no evidence has been supplied that indicates any KYC images have been obtained from Binance, as these images do not contain the digital watermark imprinted by our system. With that said, our security team is hard at work pursuing all possible leads in an attempt to identify the source of these images.”

CZ Reprimands Users Accidentally Aiding Attacker

On social media, CEO Changpeng Zhao (known as ‘CZ’) requested users not share the address of the Telegram group or spread misinformation based on nonofficial sources.

“Don’t fall into the ‘KYC leak’ FUD. We are investigating, will update shortly,” he tweeted earlier Wednesday. 

Some sources, including CZ, state that the data involved stems from a previous scare in 2018 which involved both Binance and fellow exchange Kraken and the current hype is merely a regurgitation of old news. 

The statement further suggested this was the most likely explanation, noting that at the time, the would-be hacker refused to demonstrate the authenticity of the haul. 

“On initial review of the images made public, they all appear to be dated from February of 2018, at which time Binance had contracted a third-party vendor for KYC verification in order to handle the high volume of requests at that time,” it reads.

“Currently, we are investigating with the third-party vendor for more information.”

Binance has remained broadly free of serious security compromises in its brief history. An exception came earlier this year when a hacker managed to steal user funds worth $41 million. Binance subsequently refunded users from its own pocket.


What do you think about the alleged Binance user data? Let us know in the comments below!


Images via Bitcoinist Image Library, Twitter: @cz_binance

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Led 18

ShapeShift Aided 60 Law Enforcement Inquiries in 2018, Erik Voorhees Reveals

It seems like ShapeShift has done exactly as its name suggests, changing form almost beyond recognition. Founder, CEO, and no fan of the SEC, Erik Voorhees’ exchange once existed without accounts. Now they have full KYC and hand over customer data upon request.


ShapeShift Shocked Crypto World With KYC

In what can only be described as a seismic shift in ethos, ShapeShift started implementing KYC in September 2018. They first sugarcoated it as a “membership program,” for which users would have to provide “basic personal details.” This would allow the exchange to reward them in the form of higher trading limits, cheaper fees, and the like.

Whichever way you spin it, however, the company was paving the way for full KYC/AML. And all customers would have to undergo it by the end of the year. Voorhees later admitted the decision was largely due to “regulatory hurdles.” It also stung the company financially, forcing them to lay off some 37 employees.

ShapeShift made a name for itself as a frictionless way to move crypto funds. But if the company was to compete in a regulatory environment that’s increasingly heating up, it would have to get compliant. Plain and simple.

ShapeShift and Law Enforcement

A blog post tweeted out by Voorhees yesterday may shock its users who thought they had complete anonymity before Q3. Making a reference to Kraken and how their transparency with law enforcement inspired ShapeShift to also help, they say that in 2018, the exchange aided in 60 law enforcement requests.

The below charts depict the various types of law enforcement requests that come in different forms from governments around the world.

ShapeShift Law Enforcement Requests

The company says:

In the United States, they often take the form of subpoenas… What probably won’t come as a surprise is that the United States makes up the largest number of these requests.

A subpoena is a court-ordered request that essentially forces a person or entity to take an action. This could either be to testify before a court or hand over documents. Voorhees is no stranger to these.

What’s interesting is that there was an influx of requests towards the end of quarter three and moving into quarter four. The company says that this is congruous with other crypto companies in the industry, citing Market Watch.

ShapeShift No Longer Anonymous in Anyway

For users who thought that moving crypto through ShapeShift was a viable way of facilitating criminal activity, KYC clipped their wings. And if they had any notion that their transactions were anonymous on ShapeShift at any point last year, they just go a wakeup call.

There’s a lot of scrutiny on cryptocurrencies as the technology and use evolves. ShapeShift has always held financial transparency as a core principle, and for this reason, we felt the world should know that these types of law enforcement requests happen – almost continuously.

What do you think about Shapeshift aiding law enforcement? Share your thoughts below!


Images courtesy of Shutterstock, Shapeshift.io

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Zář 16

Belfrics Singapore launches Belrium ICO, a KYC Complaint Blockchain

· September 15, 2017 · 11:00 pm

Belfrics Global, the fastest growing cryptocurrency exchange and Blockchain development firm in Asia and Africa has launched Belrium ICO to power the 1st KYC compliant blockchain, Belrium. It offers customers a secure, private, personalized and decentralized ecosystem that aims to minimise the repetition related to KYC compliance, saving considerable time and cost.

[Note: This is a press release.]


Mr. Praveenkumar Vijayakumar, Chairman & CEO, Belfrics said:

The evolving regulations related to KYC compliance have made KYC-based systems more complex and have increased the time for customer on-boarding. That’s where Belrium turns out to be different. Businesses and enterprises across the globe unanimously agree that growing complexity and cost of KYC compliance are major reasons that affect outcomes from both organizational as well as customer perspectives. Belrium is unique in this context as it enables businesses and enterprises to not only reduce the customer on-boarding time but also simplifies the compliance process by eliminating the need for repetition.

At Belfrics, we are constantly striving to offer both experienced and new users a secure and reliable access to the world of cryptocurrency, ensuring that they receive the best return on investment (ROI). Unlike many other Initial Coin Offerings (ICOs) where the actual product is years away, we are not selling merely an idea. Belfrics has already established itself as a reliable digital currency exchange and a leading software development firm in more than eight countries including India, Singapore, Malaysia, Hong Kong, Middle East, and African nations.

Driven by the commitment to enable users with seamless accessibility to using Bitcoin, we have created our proprietary ecosystem. It is a hybrid model that encompasses the benefits of both centralized and decentralized exchanges. Belfrics cryptocurrency brokerage platform not only features top-notch usability but also facilitates users with a liquid order book. We have carefully spread our operations into various aspect of Blockchain space. Since the Blockchain space is vast and the potential is huge, we have divided our operations into smaller blocks.

BET (belfrics Exchange tokens- an ERC20 token developed on Ethereum) will be issued during the ICO. After Belrium blockchain development is completed, BET tokens will be replaced with BEL coins (the access coin for Belrium) at 1:1 ratio. The fundraising will last for a period of one month starting from 8th September 2017 to 8th October 2017. The amount of token issued is denominated in Bitcoins. Contributions made in ether will be converted at the prevailing rate on the best offer basis. Throughout this period, a contribution of one bitcoin (1 BTC) will lead to an allocation of 2000 BET (belfrics Exchange Tokens) along with a time-dependent bonus.

Mr. Praveenkumar further added:

ICO Investments will be channelled to Belfrics Exchange operations, Belrium KYC blockchain product development and BelfricsBT technology development over the period of next 3 to 5 years. It will also be utilised towards Firstrike acquisition, Belrium foundation, existing investors and pre-ICO marketing contributions.

Token sales period: 8th September 2017 10 AM SGT (Singapore Time) to 8th October 2017 11:59 PM SGT through www.belrium.io.

Price of token:BET = 0.0005 BTC.

Tokens can be purchased using: Bitcoins & Ethereum. Contributions made in ether will be converted at the prevailing rate on the best offer basis.

Symbol: BET

Emission rate:BEL per bock.

Blockchain: Belrium

Consensus method: DPOS

  • Blockchain developers: Team of 8
  • Prototype: Exchange operational in three countries. Prototype for Belrium KYC application is yet to be released.
  • Token details: Voting rights and access rights
  • Token supply: Proportional to raise
  • Distributed in ICO: Proportional to raise

Allocation of Tokens

Pool A (60%): Pool A will represent the contribution made during the token sale period.

Pool B (20%): Belfrics reserve and founders allocation

Pool C (10%): Reserved for Key team members and contributors who worked to develop the company and the ideas, supporting structures and facilities provided.

Pool D (10%): Discretionary distribution to early backers, introducers, marketing team, advisors, and development team. 

About Belfrics

The fastest growing exchange in Asia and Africa. The creation of Belfrics was inspired by the enormous potential of digital currency — a financial environment of transparency and efficiency, decentralized currency system, and greater access to financial markets that were once open only to professionals.

Belfrics is headquartered in Malaysia with its live exchanges operating in Singapore, India, and Kenya. Belfrics development team and operational team are based out of Malaysia and India. Belfrics Japan is set up to obtain crypto exchange and Money transmission license to conduct global Crypto based remittance services. By end of 2017, we plan to operate 5 more exchanges in African region.

For further information please contact:

Jigar Chatwani
+91 9819026976
Email: [email protected]


Images courtesy of Belfrics

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