While crypto executives tout the security benefits of blockchain technology, they remain vulnerable to the same mundane hacks as everyone else.
Binance co-CEO Yi He recently discovered this harsh reality when hackers exploited her dormant WeChat account through a recycled phone number. Pretty basic stuff, really. Not some sophisticated crypto heist – just good old-fashioned carrier negligence.
Here’s what happened: Chinese mobile carriers reissue canceled phone numbers after three months. Attackers snagged Yi He’s old number, then used it to bypass WeChat’s SMS verification. Just like that, they were in. No blockchain wizardry required. Just patience and timing.
The digital equivalent of waiting for someone to move out so you can steal their mail.
The hackers wasted no time executing a classic pump-and-dump scheme. They purchased 21.16 million “Mubarakah” tokens with stolen funds, artificially inflated the price by 800%, then promoted it through Yi He’s hijacked account.
When unsuspecting users jumped in, the scammers sold their holdings, pocketing about $55,000 before the price tanked 60%. Textbook scam, new platform.
Binance responded quickly, working with WeChat to restore Yi He’s account the same day. They’ve promised to compensate victims with BNB airdrops. How generous of them to clean up after their security mess.
The timing couldn’t be worse – Yi He had just been appointed co-CEO. Talk about a rough first week.
This attack follows similar incidents targeting crypto executives and organizations, including a fake SEC announcement that moved Bitcoin prices by $1,000.
The lesson? Web2 security flaws continue to plague Web3 pioneers. All the blockchain innovation in the world can’t protect against recycled phone numbers and SMS-based authentication. Implementing two-factor authentication could significantly reduce the risk of such security breaches.
Carriers reuse numbers, platforms rely on text messages, and executives neglect dormant accounts. This incident illustrates the growing crisis in cryptocurrency, with social media breaches accounting for over half of all crypto fraud schemes discovered in 2024. This incident exemplifies how executive identities resemble market infrastructure, with attacks against them directly impacting trading volume and user trust.
