The world’s biggest cryptocurrency exchange has some tough work to do. It has been ordered by London’s High Court to help locate and freeze the accounts of cybercriminals who stole $2.6 million worth of cryptocurrency in a recent hack. An adjudicator conceded the solicitation of Fetch.ai, an artificial intelligence (AI) FinTech firm, for Binance to do whatever it has to do to assist with distinguishing the culprits and find and recuperate the stolen resources.
This is the first time Binance has received such an order and it could be the start of many more instances of regulators holding exchanges accountable for funds that are moving across cryptocurrency blockchains. Already, Binance noted it was focused on complying with regulations wherever it operates, and would extend its international compliance teams to work intimately with regulators across the globe.
Binance said it is willing to help out the case, stating that it has helping Fetch.ai try to recuperate the digital assets. A company spokesperson asserted that the exchange regular freezes accounts that might be tied to questionable activity in accordance with its internal security and platform policies. He added that this is done to guarantee the safety of all its users, but stopped short of indicating if any progress had been made in tracing the stolen cryptocurrency.
Fetch.ai is incorporated in England and Singapore, and develops blockchain-based AI projects. It claims the culprits hacked into their Binance-held cryptocurrency accounts on June 6, but adds that restrictions on the account prevented them from removing any funds. However, they were able to be transferred, and were likely sold to a third party, possibly for less than their value, within an hour of the hack.
Syedur Rahman, a partner at the law office Rahman Ravelli, said Binance had advised Fetch.AI of surprising movement in its record and had effectively frozen assets. Binance demonstrated it would conform to the orders. Rahman Ravelli is the law firm representing Fetch.ai. For the case to be successful, Fetch.ai had to demonstrate that it was a survivor of misrepresentation on Binance prior to having the option to look for a recuperation request.