Binance alerts users to rising exchange listing scams

Binance cryptocurrency exchange has warned about a resurgence of exchange listing scams. These increasingly sophisticated scams involve impersonators using the names of Binance’s high-profile individuals to offer fraudulent token listings for a fee.

Rise of impersonation scams

The resurgence of these scams was highlighted in a January 29th post by Yi He, a co-founder of Binance. He revealed that an impersonator on LinkedIn was using her identity to propose token listings in exchange for payment. This revelation is particularly alarming as Yi He confirmed her limited activity on LinkedIn, emphasizing her lack of involvement in Binance’s listing discussions. This incident underscores the sophistication of these scams, where fraudsters create convincing profiles to deceive project developers and co-founders.

Additionally, blockchain author Anndy Lian’s exposure of similar fraudulent activities further cements the seriousness of the issue. Lian shared screenshots of WhatsApp conversations where individuals posing as Binance staff offered free money for joining cryptocurrency discussion groups. Lian’s clarification that Binance does not operate in such groups highlights the deceptive tactics employed by these scammers.

These scams are not new to cryptocurrency, as they gained traction during the last bull market. An earlier investigation in August 2022 provided insights into the operation of these scams. Typically, scammers create fake but credible LinkedIn profiles, impersonating representatives from reputable exchanges.

They then approach project developers with the false promise of listing their tokens on these exchanges for a hefty fee. Often exceeding 250,000 USDT, the fee is demanded as an initial deposit to start the listing process. Unfortunately, once the payment is made, the token is never listed, and the victims are defrauded.

Binance’s response and advisory to users

In response to these fraudulent activities, Binance’s customer support team has issued guidelines to help users identify and avoid such scams. They advise users to verify the authenticity of individuals claiming to represent Binance by using official links from the Binance website. 

This verification applies to various channels, including website links, email addresses, phone numbers, and social media accounts like WeChat, Twitter, and Telegram. Binance emphasizes the importance of not engaging with non-verified sources or disclosing account details to them.

Binance’s proactive stance in educating its users about these scams is a critical step in combating fraud in the cryptocurrency space. By raising awareness and providing clear guidelines, Binance aims to protect its users and maintain the integrity of its platform. The company’s commitment to security and user protection is evident in its response to these ongoing impersonation scams.

The resurgence of exchange listing scams in the cryptocurrency market reminds us of the persistent risks in this evolving sector. Binance’s warning about impersonators offering fake token listings is a timely and necessary measure to safeguard its users. As the market recovers, vigilance and awareness remain crucial for participants in the digital currency ecosystem.