Binance puts $5 million on the table to expose fake agents
In an official statement, Binance warned its users and project leaders about fraudulent agents who claim to facilitate the registration of tokens on Binance, often in exchange for payments. Accompanying the report, the exchange offered a reward of up to $5 million for credible information identifying these practices.
In short
- Binance reminds that any listing takes place only through its official channels and that no third party agent is authorized to offer or monetize the listing.
- Binance is offering up to $5 million to whistleblowers who provide valid information about these fraudulent practices.
A strict reminder of Binance listing rules
For Binance, projects that want to be listed must go through the platform’s official channels. As a result, there is no authorized intermediary, no external agent or third party agent authorized to offer or expedite a quotation.
Thus, Binance published an official statement warning its community against fraudulent agents. In fact, the latter claims that it interferes with the process of listing tokens on its platform.
Binance emphasizes that requests must be made directly through the forms provided. And that, whether it is a quotation on the spot market, futures contracts or specific programs such as Alpha Featuring. Therefore, any external request asking for a fee, commission or reward on behalf of Binance is by definition suspicious.
The goal of this recall is to end the ongoing confusion in the industry, where some players are exploiting the apparent complexity of dating processes to artificially give themselves credibility.
Fake agents identified, but a wider phenomenon
In its statement, Binance explains that it has identified several individuals and entities posing as Binance exchange agents. These actors claimed to be able to intervene in the listing process in exchange for payment. This is sometimes done under the guise of consulting, incubation or investment research services.
Among the names listed is Central Research, which publicly bills itself as a financial analysis organization. It also includes the BitABC crypto incubator and some people active on social networks. The latter actually claim to be former professionals in traditional markets or liquidity providers in altcoins.
However, Binance states that this blacklist is partial. It does not reflect all actors involved in this type of practice. Moreover, this is only an overview of a larger problem that goes beyond a few isolated profiles.
To combat this abuse, Binance has taken an offensive approach. The platform is offering a reward of up to $5 million to whistleblowers who can provide valid information about fraudulent brokers posing as Binance representatives.
Must forward messages through official channel (email protected). Binance states that information received may lead to firm action. These include legal proceedings against identified persons.
The goal of this initiative is to deter fraudsters as well as promote transparency within the community. It comes in a context where the listing process of centralized exchanges is regularly criticized for its illegibility, including from the founder of Binance himself, who has recognized certain flaws in the system in the past.
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Lydia, a teacher and IT engineer, discovers Bitcoin in 2022 and dives into the world of cryptocurrencies. It popularizes complex topics, deciphers Web3 challenges and defends the vision of an open, inclusive and decentralized digital future.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.