Executives of Crypto Exchange Binance Client Kidnapped and Scammed for $12.5 Million

Executives of a VIP client of crypto exchange Binance were tricked and kidnapped in Montenegro during an alleged “business trip” in which they had to compulsorily comply with the thugs’ demands by emptying their crypto wallets. In this “kidnapping hack,” the stolen funds amounted to $12.5 million. Changpeng Zhao, CEO of Binance, and his team tracked the on-chain movement of the loot and managed to block up to 94% of the sum. $11.8 million was freed in USDT and safely returned to a Tron wallet.

Unusual Hack Attack

This is a hack attack different from the usual methods by which cybercriminals manage to gain virtual access to the victim’s private keys through phishing, malware, and whatnot. This time the violence was physically enacted by going so far as to kidnap some executives of a VIP client of the Binance exchange and forcing them to transfer all their $12.5 million in crypto from their wallets to those of the crooks.

Recovery Efforts

The executives in question were in Montenegro under the guise of an alleged “business trip” by which they were duped and ended up in a very unpleasant situation. Making this story known is the CEO of the Binance exchange platform itself, who told his community about the affair with a post on X. All that has been leaked is that 94% of the funds stolen in the particular “hack” were recovered thanks to an intelligence team that combed through all the on-chain traces left by the kidnappers.

Binance’s Response

After CZ reported the news story, Binance’s customer support reminded its community about standard procedures the exchange must follow when reporting abuses through platform accounts: “Depending on the information you provide, Binance may grant a temporary courtesy freeze of any allegedly stolen assets… To keep stolen assets frozen, you must provide a police report within 7 days after contacting Binance Support.”

Crypto Censure Debate

Below CZ’s post telling the story of this “real hack” that took place in Montenegro against a Binance customer, one user in particular stood out with a rather polemical comment that opened a very interesting debate. This is Crypto Eagles, who asked CZ if crypto is better than fiat currencies given that it can be “freezed.”

The Dilemma

Crypto Eagles questions whether it makes sense for Tether and Binance, even in case of hack or abuse, to have power to block a USDT balance and return cryptos in question to original owner. According to CZ himself, everything is relative and depends on choice made by wallet owner.

Hot Take: The Power of Choice

CZ pointed out that everything is relative and depends on your choice as a wallet owner. If you use Monero, you enjoy maximum privacy and freedom while if you hold USDT you are subject to possible censorship. Holding BTC puts you in middle ground where it is not freezable but movements can be tracked with public blockchain help.