Binance stops DeFi fraud project and recovers $344,000
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Answer Binance stops DeFi fraud project and recovers $344,000
Binance has announced that it has halted a DeFi project after it was launched on the Binance Blockchain (BSC) and recovered $344,000.
Tell Source That Binance obtained an estimated 99.9% of the $345,000 worth of cryptocurrency stolen from a project claiming to be an automated market maker called “Wine Swap” last October.
The project raised funds upon launch directly on the Binance blockchain, after which the project operator escaped with the cryptocurrency deposited by users In just an hour I collected it.
The users money checkout scam was carried out by transferring 19 different cryptocurrencies held in the “Wine Swap” address to a personal address belonging to this scammer.
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The various cryptocurrencies were transferred via incremental transfers across the Binance Blockchain Network (BSC) and then to the old Binance Blockchain and then to Ethereum.
According to Binance, a small portion of the funds were transferred to the exchanges, in addition to the use of the Binance Bridge, a service that provides access to liquidity between the blockchain and decentralized applications on the old and new Binance blockchains.
Binance said its security team followed the transactions closely and were able to identify the project as the scam.
At that time, the scammer had converted the cryptocurrencies he had obtained into stablecoins, BNB, Ethereum and LINK.
Binance called the fraudster to respond to the call and return the money he stole and tried to escape.
In its statement, Binance said:
Analysis of transfers to and from the Wine Swap project allowed us to identify addresses that fell victim to the scam and calculate the exact amount owed to them.
Binance is now planning to refund the victims’ addresses within the next few days.
Although Binance managed to recover the money, it faced sharp criticism after a fraudulent project was able to launch on the blockchain that it supervises and how it did not verify it well in order to obtain the investors’ money.
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It is unknown whether Binance contacted law enforcement agencies or not in the process.
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