Just a week after being appointed co-CEO of Binance, Yi He is targeted in a sophisticated cyberattack. Her WeChat account was compromised to orchestrate a pump-and-dump scam involving the memecoin Mubarakah. This incident reignites discussions on the security of Web 2.0 platforms, even for prominent figures in the crypto industry.
On-chain analyst Lookonchain revealed the mechanics of the scam. The hacker had created two wallets several hours before the hack, evidence of methodical preparation. The attacker invested 19,479 USDT to purchase 21.16 million MUBARA, building a position at very low prices. Once the WeChat account was compromised, the fraudulent post triggered a surge in the token, allowing the hacker to profit from market euphoria.
According to on-chain data, he sold 11.95 million tokens for 43,520 USDT, while retaining 9.21 million MUBARA valued at $31,000. The total gain reached approximately $55,000, obtained within a few hours. This scheme perfectly illustrates a classic market manipulation: discreet accumulation, identity theft as a catalyst, then selling during the peak of retail investor enthusiasm.
Changpeng Zhao responded by denouncing the vulnerabilities of Web 2.0 platforms, which rely on weak authentication mechanisms, particularly phone numbers. In contrast, Web 3.0 systems, based on decentralized models, self-sovereign identities, and multi-signature protocols, offer superior security, although their adoption remains limited, even within the crypto industry.
The irony is notable: An executive of the largest crypto exchange platform becomes a victim of the same centralized systems that Web 3.0 aims to replace, revealing the gap between decentralized vision and the tools still used daily.
Get free trades from a pro on our private group!
In stark contrast to the hack, Binance announced it has obtained a full ADGM license, becoming the first digital asset exchange to benefit from this authorization. The FSRA has validated Binance’s operation, which is organized around three entities: Exchange, clearinghouse, and retail broker-dealer. This structure meets the requirements of the regulator, one of the most stringent in the world.
Richard Teng emphasized the importance of this advancement: “Holding an FSRA license demonstrates that Binance meets the highest international standards”, particularly regarding compliance, governance, and risk management. The timing creates a paradox: Binance strengthens its regulatory legitimacy while one of its executives suffers a hack revealing the flaws of traditional tools.
Bitcoin is trading around $91,900, down 1% over the past seven days. The market remained stable despite the incident, proof of investors’ growing maturity in the face of negative news concerning exchanges.
Last chance! Get $90 in BTC or $50 off when purchasing the Ledger wallet of your choice. The offer ends soon:
Related articles:
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
