- Binance addresses misuse of features to access higher advantages by account holders.
- The leading crypto exchange has witnessed increased regulators’ scrutiny in the past months.
Crypto exchange Binance announces its ways to address the misuse actions by account holders. It stated that some of the platform’s features are exploited by users to gain unfair advantages including better fee rates and extending API limits.
To prevent such actions, the exchange plans to reward individuals for reporting misuses and is planning to take ‘stricter measures’ to ensure protection and market integrity. The announcement stated that they would provide rewards for ‘verified’ reports. Misuses include and are not limited to unauthorized selling of account access and selling accounts for rewards.
Notably, the platform offers services through sub-accounts, managed sub-accounts, and fund-manager accounts. Moreover, the VIP or Binance Institutional accounts offer even higher trading limits with lower fees. Binance aims to address the exploitation of fee rates and API by particular users.
Relatedly, the platform has also observed increased cryptocurrency scams in the past few weeks. In the past month, Binance witnessed a major hacking incident of several accounts which led to users losing millions of dollars. One Chinese user lost approximately $1 million by downloading a Google plugin promoted by Key Opinion Leaders (KOLs).
Is 2024 Witnessing a Surge in Cryptocurrency Scams?
According to US FBI’s March reports, the country lost $3.94 billion in 2023. In H1 of 2024, the market observed a notable surge in reports of global cryptocurrency scams.
Leading crypto exchanges including Binance faced security-related lawsuits. Notably, Binance founder and former CEO Changpang Zhao’s arrest in May caused quite a stir in the market. Moreover, the exchange’s executive Tigran Gambaryan’s arrest in Nigeria
On a global level, countries including Singapore, Hong Kong, and Turkey have shown reports of cryptocurrency scams. These instances have raised speculations in the community and have enhanced regulators’ scrutiny of cryptocurrency.
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