Hong Kong, China — [Jan, 26]: Today, Ban On, a Blockchain.com user living in Hong Kong, China, has come forward about the company’s software security breach. According to Mr. On, the company has lost 9.41 of the Bitcoins he had deposited into the company’s wallet over the course of two years on January 3, 2021. Mr. On says that he sought aid from Blockchain.com’s Twitter support page, but has yet to receive any reply from them. After coming across the company’s Chinese Telegram group, Mr. On discovered that the company had abandoned the group and left behind many fellow Chinese victims, all of whom have also suffered lost assets after fraudsters hacked their online wallets.

Mr. On had reached out to blockchain.com's CEO Peter Smiths directly for assistance but were rejected by them. Mr. On therefore had to report the case to Action Fraud on 20th January 2021 and still waiting for respond from the police of U.K.

Mr. On began purchasing Bitcoin in 2017 and deposited them into Blockchain.com’s wallet on April 8, 2019. In total, Mr. On deposited 9.9 Bitcoins into the company. Mr. On’s losses amount is about $372,236.86 total, a devastating loss considering the fact that he had invested all his assets into Bitcoin.

Mr. On is not the first victim of such a widespread security breach; in 2019, MIT reported that hackers had stolen $2 billion worth of cryptocurrency stored in Blockchain.com wallets since 2017.

Blockchain.com’s position on the matter appears to be that it functions on a “trustless” basis, with the company having no knowledge of users’ passwords and private keys. Their claim is apparently that any loss of currency in their non-custodial wallet would be due to a security issue in users’ system, rather than any deficiency on their part. By keep claiming themselves as a “non-custodial” wallet, “have no right to access user funds”, they are in fact redirect all the risks to vulnerable users instead of taking social responsibility as an enterprise. As they are a non regulated digital platform, they are using a tricky way to avoid any potential unlawful responsibilities.

Mr. On has engaged in correspondence with the company’s customer support team, but has only received such pro-forma responses.

About:
Blockchain.com is a cryptocurrency exchange and cryptocurrency wallet service compatible with Bitcoin, Bitcoin Cash and Ethereum, as well as a Bitcoin block explorer service founded in Luxembourg, Luxembourg on August 30, 2011. The company reached over 63 million wallet users in December 2020.