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News

Gate.io Is Raising Concerns About Easy Identity Verification

May 9, 2023 - Around 2 mins mins to read

Key Points:

  • A Gate.io account under the name Kim Jong-Un with the email address “notlazarus” has been verified by the exchange.
  • The “KYC-1” basic verification tier on the exchange also allowed the account user to withdraw up to 100,000 USDT each day.
Usually, for a trading account that has passed the Know Your Customer (KYC) program of exchange, it will be tied to the identity of a real person. But whether it is, a recent revelation shows that Gate.io has holes in this regard.
Gate.io Is Raising Concerns About Easy Identity Verification
Gate.io Is Raising Concerns About Easy Identity Verification 2

ZachXBT, an on-chain detective, aimed to test the theory that crypto exchange accounts give some protection when tracing down stolen cash. To disprove this, he created a Gate.io account under the name Kim Jong-Un with the email address “notlazarus.” ZachXBT took a picture of his application clearance, which showed he had passed KYC and was authorized to trade bitcoins on the exchange.

It’s unknown if ZachXBT tampered with his ID to get to this stage. Despite this, the results revealed problems in Gate.io’s application process, notably in relation to name verification.

“When stolen funds go to a crypto exchange people like to assume that there is a real person with a real identity tied to an account,” ZachXBT said.

Additionally, the “KYC-1” basic verification layer of the exchange allowed the account user to withdraw up to 100,000 USDT every day.

To emphasize the point, ZachXBT repeated the process with made-up names and names on the Office of Foreign Assets Control (OFAC) sanctions list, as well as email addresses like “harmonyhacker” and “lazaruslover,” all of which were approved, contradicting the notion that bad actors avoid exchanges using. The Lazarus Group is a group of hackers and fraudsters that are allegedly directed by the North Korean government.

As Coincu reported, the US Treasury sanctioned three people for supporting the Democratic hackers Lazarus Group’s conversion of stolen crypto to fiat report for supporting the People’s Republic of Korea’s (DPRK) clandestine weapons of mass (WMD) and ballistic missile programs.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

gate.io

Kim Jong-Un

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Gate.io Is Raising Concerns About Easy Identity Verification

Key Points:

  • A Gate.io account under the name Kim Jong-Un with the email address “notlazarus” has been verified by the exchange.
  • The “KYC-1” basic verification tier on the exchange also allowed the account user to withdraw up to 100,000 USDT each day.
Usually, for a trading account that has passed the Know Your Customer (KYC) program of exchange, it will be tied to the identity of a real person. But whether it is, a recent revelation shows that Gate.io has holes in this regard.
Gate.io Is Raising Concerns About Easy Identity Verification
Gate.io Is Raising Concerns About Easy Identity Verification 4

ZachXBT, an on-chain detective, aimed to test the theory that crypto exchange accounts give some protection when tracing down stolen cash. To disprove this, he created a Gate.io account under the name Kim Jong-Un with the email address “notlazarus.” ZachXBT took a picture of his application clearance, which showed he had passed KYC and was authorized to trade bitcoins on the exchange.

It’s unknown if ZachXBT tampered with his ID to get to this stage. Despite this, the results revealed problems in Gate.io’s application process, notably in relation to name verification.

“When stolen funds go to a crypto exchange people like to assume that there is a real person with a real identity tied to an account,” ZachXBT said.

Additionally, the “KYC-1” basic verification layer of the exchange allowed the account user to withdraw up to 100,000 USDT every day.

To emphasize the point, ZachXBT repeated the process with made-up names and names on the Office of Foreign Assets Control (OFAC) sanctions list, as well as email addresses like “harmonyhacker” and “lazaruslover,” all of which were approved, contradicting the notion that bad actors avoid exchanges using. The Lazarus Group is a group of hackers and fraudsters that are allegedly directed by the North Korean government.

As Coincu reported, the US Treasury sanctioned three people for supporting the Democratic hackers Lazarus Group’s conversion of stolen crypto to fiat report for supporting the People’s Republic of Korea’s (DPRK) clandestine weapons of mass (WMD) and ballistic missile programs.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News