- Binance exchange rewards $200,000 to private investigators.
- Russian nationals Potekhin and Karasavidi are the alleged perpetrators of the phishing campaign.
- OFAC has placed sanctions against the duo.
Binance exchange has rewarded $200,000 to unidentified private investigators. In March 2018, Binance pledged a reward to anyone who would bring about the arrest of the cyber attackers behind the exchange hack in 2018.
The investigators have provided a report identifying one of the alleged attackers. Additionally, they also compiled information on how the attack was carried out. Following then, another $50,000 will be awarded to the private investigators once the attackers have been placed in custody.
Suspects Behind the Binance Exchange Hack
The US Department of Justice (DoJ) has announced criminal charges on Russian nationals Potekhin (aka cronuswar) and Karasavidi (aka Dmitriy Karasvidi). Apparently, they are the alleged perpetrators of the phishing campaign. Initially, the two created fake websites, mimicking the legit website of Binance.
As per the indictments, the two men allegedly stole around 566 bitcoin (around $8.9 million) from 142 Binance users. Notably, this occurred between December 19, 2017, and March 2, 2018. To add on, the duo also stole $5.24 million from 158 Poloniex victims, and $1.17 million from 42 Gemini users.
The Binance exchange particularly noted that:
The security team passed on the investigators’ findings to U.S. law enforcement, along with other information and indicators. Binance will also work with the U.S agencies to help identify the suspects.
Currently, the two are being charged with conspiracy to commit computer fraud and abuse and conspiracy to commit wire fraud. Also, they are being charged with money laundering conspiracy and two counts of aggravated identity theft. In particular, the statutory maximum penalty for all the charges against the defendants is 59 years imprisonment.
DoJ and OFAC Investigations
DOJ charged the cybercriminals in February. In addition, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) has placed economic sanctions against the two. Also, freezing all property and interests of the accused (subject to US jurisdiction).
Furthermore, OFAC states that the United States Secret Service has seized millions of dollars in virtual currency and US dollars traced to Karasavidi’s account. Also, it has added the list of several cryptocurrency accounts thought to have been used by the defendants.
Read more: The Biggest Crypto Exchange Hacks in History