Seychelles based crypto derivatives trading giant, BitMEX reported in the hours leading up to press time that it noticed an email privacy issue that affected customers.
The security breach notably involved a general user update email that users received, which contained the email addresses of other users. However, the exchange assured users that they acted immediately to contain the issue, identified the root cause, and would get in contact with them on how to fix the problem.
We are aware of an email privacy issue impacting our customers. We have identified the root cause and will be in touch with any users affected by the issue. See our blog for details: https://t.co/FNp2Fdyxdn
— BitMEX (@BitMEXdotcom) November 1, 2019
Other Exchanges Request Email Change
With some BitMEX users understandably getting the email addresses of other customers, it is inevitable that the privacy of email addresses stored on the platform has been breached.
Thus, other cryptocurrency exchanges, including Binance and OKEx, published updates requesting that users who are using the same email address to operate an account on their exchange can update their email address.
If you are affected and have an OKEx account with the same email login, we recommend that you change your email for security reasons. Email change requests will be prioritized during this time.
— OKEx (@OKEx) November 1, 2019
⚠️We are aware of a large-scale user email leak from another exchange.⚠️
If you are one of the affected users and you also have a Binance account under the same email address, we recommend changing your email immediately using the below steps: https://t.co/sgEr5sqleg
— Binance (@binance) November 1, 2019
The Risk With Centralized Crypto Exchanges
The latest email privacy breach at BitMEX apparently highlights the reason why cryptocurrency users are discouraged from storing their assets or personal information on these centralized platforms.
Contrary to the pseudonymous or full anonymous status that users enjoy when they trade crypto on decentralized exchanges or directly for their wallets, centralized exchanges pose a counterparty risk as hackers could target and steal user data for mischievous purposes.
Beyond that, users also face the risk of losing their assets if hackers steal from the exchange, and the platform operator is not able to refund users.
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