Twitch Data Breach Sparks Allegations of Money Laundering via Bits
Last month, Twitch experienced a major data breach that resulted in the leak of payout information for streamers on the platform. Upon examining the data, members of the Turkish Twitch community noticed that some smaller streamers were receiving unusually high amounts of bits, leading to suspicions of money laundering.
The Bits Feature and Twitch’s Refund Policy
Bits are a form of virtual currency on Twitch that can be used to support streamers. According to Twitch’s refund policy, bits are non-refundable, except in cases of fraud. However, the current situation suggests that fraudulent activity may be taking place.
YouTuber Jake Lucky has shed light on the situation, explaining that the streamers receiving the suspicious bits are reportedly returning most of the value to the donors, supporting the claims of money laundering. Additionally, hackers are said to be using bots and compromised Twitch accounts with stolen credit cards to donate the bits to streamers.
Many Turkish VALORANT players have found themselves at the center of the controversy, as they were the recipients of the questionable bits donations. Some individuals, such as Lixa Esports’ Farewell, have admitted their involvement but deny any knowledge of criminal activity.
The scale of the alleged money laundering scheme is believed to be extensive. Corentin Phalip from VLR.gg estimates that at least 300 streamers are implicated in the scheme, while Middle East Eye reported that hackers have already laundered nearly $10 million.
Twitch is expected to take action against the alleged fraud on its platform and has already banned 150 accounts in September alone, according to statements made to Dexerto. Riot Games, the publisher of VALORANT, is also reviewing the situation, but they will wait for authorities to provide more information before taking any action.
When it comes to fraud policy, Twitch acknowledges that any on-platform fraud will be addressed. However, currently, Twitch’s Off-Service Conduct Policy does not explicitly cover fraudulent activity.