Popular cryptocurrency exchange helps user recover $29,780 from scam

Popular cryptocurrency exchange helps user recover $29,780 from scam

Binance, one of the world’s best-known cryptocurrency exchanges, assisted a crypto user in recovering 200,000 yuan (worth approximately $29,780 US). The crypto user had previously fallen for an exit scam claiming to be a yield farming project, which typically involves investors receiving tokens as rewards for interacting with protocols.

The victim, who claimed to have done his due diligence, recently invested in what he believed to be a liquidity mining project. The following day, the victim noticed that the yield farming project’s website had become inaccessible and the firm’s social media presence had completely disappeared. The incident occurred despite the victim’s work in the financial sector and purported experience with cryptocurrency markets.

After conducting his own research, the victim uncovered a capital flow diagram showing that his funds had been deposited on Binance using 10 addresses. Fortunately for the victim, Binance was able to lock the stolen funds on its systems after receiving complaints that were later corroborated with police records.

This wasn’t the first time Binance had dealt with scams on its system. In 2019, the crypto exchange worked with British official to investigate a $51 phishing scam that involved the use of illegal scripts.

Earlier this year, Fisco, which is a large Japanese crypto exchange company, sued Binance for its part in the laundering of $9 million worth of bitcoin. The report alleged that Binance’s “know you customer” protocols were far too lax and failed to meet industry standards.

For more information on Binance can found at Binance.com.

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