August 3, 2023

Binance CEO Warns of New Crypto Scam

Binance Zhao

Binance Zhao

A scam targeting the cryptocurrency community has been on the rise, and Binance CEO Changpeng “CZ” Zhao recently warned his followers about it on a social media platform, X (formerly known as Twitter), according to Cointelegraph.

The scam involves fake wallet addresses being used to defraud users during transactions. Scammers generate addresses that start and end with the same characters as the user’s original address. To execute the scam, the scammer sends the target small transactions that appear on the victim’s transaction history. If the victim copies and pastes an address from one of these transactions, the funds will be sent to the scammer. Beware of this scam and always double-check wallet addresses before making transactions.

On August 1, a skilled crypto operator reportedly became a victim of a scam and sent cryptocurrencies worth $20 million to a dust address, as per CZ’s statement. However, the operator realized the mistake immediately and requested Binance to halt the Tether before it could reach the scammer.

One way to avoid falling for a scam is by using a blockchain domain, like the Ethereum Name Service. These domains are similar to email addresses and enable users to identify their wallets using regular words instead of a complex combination of letters and numbers. If you’re a Binance user, you can buy these domains directly through the platform.

It is not recommended by security specialists for users to copy and paste addresses from applications when transferring funds. Additionally, it is important for users to create strong and unique passwords for their crypto accounts and enable two-factor authentication on applications.

Coinbase users have reported experiencing similar security issues such as scams and phishing attacks associated with the company’s services and applications. Some victims have reported that scammers are reaching out to clients using the domain name of the cryptocurrency exchange.

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