Binance has come under pressure in the United Kingdom in recent months and now faces more problems following a recent court order
Crypto exchange Binance has been ordered to trace cryptocurrencies hacked from a user account by a court in the United Kingdom. This latest development comes as Binance continues to face regulatory pressure in the UK and other countries.
According to a court order made public on 13 August, the user, Fetch.ai, lost its Binance account to hackers, who proceeded to sell $2.6 million worth of cryptocurrencies on 6 June. The document revealed that the hackers sold the cryptocurrencies to a linked account for a fraction of their value to avoid withdrawal restrictions.
The court has now asked Binance to track and freeze the stolen cryptocurrencies. Fetch.ai is a registered company in the United Kingdom and reportedly held cryptocurrencies such as USDT, Binance Coin (BNB), Bitcoin (BTC) and others.
It is still unclear how Binance will trace the stolen cryptocurrencies and if the funds are still on its platform. However, the exchange might seek the help of cryptocurrency security companies and other platforms to determine the movement of the funds after leaving the victim’s account.
The cryptocurrency space recently came together to trace and freeze some of the funds recently stolen from the Poly Network decentralised finance (DeFi) protocol.
The judge threw out the consideration of the possession of the private key and pointed out that Fetch.ai has property rights over the stolen cryptocurrencies. The judge said he is satisfied that the cryptocurrencies are regarded as the property of Fetch.ai in English law.
Binance has come under heavy regulatory scrutiny over the past few months. The Financial Conduct Authority (FCA) in the UK banned Binance Markets Limited from operating, leading to some banks such as Barclays, Santander and HSBC blocking payments to Binance.
The exchange has also been banned in Malaysia and has received a warning from Italian regulators for operating without a licence. Binance continues to make changes to its services and has so far discontinued derivatives trading services in Europe and Hong Kong.