The pace of growth in the crypto market is accelerating, and as fast as frauds are racing to win the money of investors and entrants to this young market.

Recently, Binance helped an investor recover 200,000 yuan (approximately $30,000) that was lost after the user fell victim to a scam pretending to be providing returns from a ‘yield farming’ project.

According For Binance, an investor did some research on a project and concluded that he can make some money by “yield farming” on a project that promises high percentage returns after the money is deposited into it.

Read:“Bitcoin Gold” is exposed to a 51% attack, and the value of the currency “BTG” increases by 19%

The next day, this investor woke up to find that the project’s website was no longer available and that the project’s social media accounts had disappeared.

The user is quoted as saying:

I just wanted to earn high returns in a short time so I could spend it.

I didn’t realize it was the beginning of a disaster.

According to Binance, this investor worked in the field of traditional finance and I believe that the cryptocurrency markets are like traditional finance markets, and that there are no frauds and nothing will happen to his money.

It is worth noting that “yield farming” is a recent trend in modern DeFi as well, where users receive token rewards when interacting with decentralized protocols.

As soon as the user realizes that he is facing a scam, he contacts other individuals online to find cases like himself who have fallen victim to the same project.

Soon, many investors gathered around the same issue to find who was behind the scam and track down the stolen funds.

According to one investor, tracking the project led them to a scam scheme created by a user from Singapore and that the stolen funds were deposited via 10 different addresses towards cryptocurrency exchange Binance.

Read:User Demands BitMEX to Refund 30 Bitcoin… And The Platform Responds

For the record, the Binance platform was previously subjected to a lawsuit by the Japanese company Fisco, which accused it of facilitating the money laundering process, which estimated the laundered funds at about $ 9 million.

The 33-page lawsuit tells Fisco that Binance’s KYC procedures are lax and not up to industry standards.

Read:A Trader Makes $550,000 In 30 Minutes After Announcing BZRX Listing On Uniswap

Fisco added that Binance allows trading of up to 2 bitcoins without the need to provide personal KYC information.

It appears that the scammers who are the focus of our article want to take advantage of this feature to launder the victim’s money.

This time, however, Binance locked out the funds after receiving various messages from users who were victims of the scam, along with police records to verify the information.

Thus, the stolen funds were prevented from moving and returned to the original owners who fell victim to fraud.

Binance added in its post that preventing fraud in the crypto market is a common initiative that all crypto players should participate in.

Read also:

A new date has been set to return the funds affected by the Mt. Gox for cryptocurrency trading… Details here

Binance announces investment in six DeFi projects… Get to know them