So yesterday there were rumors that Binance was hacked and accordingly the market dipped a bit because of that. But after it settled, it was revealed that Binance itself was not hacked but some of its users fell for a Phishing scheme and compromised their accounts, which has not much to do with Binance itself.
A phishing scheme is where scammers send you an email that looks like it was from a certain sites and asks you for sensitive information like account name or password to “fix” a problem with your account. Some newbies fell for it and compromised their accounts but it does not seem that Binance itself was hacked.
The culprits did not withdraw all the funds into their own bitcoin wallets. Instead they bought one of the Microcryptos on Binance to pump it up to 100x its pre-spike value. So, if someone had $10,000 in the crypto, they now had $1,000,000 afterwards. They would then sell, cash in on profits, and leave the compromised account holders with a worthless Microcrypto. Binance, of course, realized this problem quickly and reversed the transactions.
Its pretty easy I think to see who the culprits were even though Cryptos are anonymous. You just follow the money. Who would benefit from a Pump and Dump such as this? My bet is either on one of the whales or the development team of this small crypto itself. What do you guys think?