An Expose Of Cryptocurrency Powerhouse: The Rise Of Hackers, And Scammers On Binance

Last Updated on 5 months by newseditor

Scams using cryptocurrencies have become more prevalent in recent years. From October 2020 to March 2021, 7,000 persons claimed losses totaling more than $80 million. Cryptocurrency platforms are prey for scammers since it’s one of the easiest methods for them to obtain access to virtual currency quickly. Similarly, a crypto giant, Binance has also been reported by Reuters as being involved in crypto frauds. The laundering of approximately $2.35 billion in illegal cash was carried out over a five-year period with the help of Binance.

A North Korean hacker team got into a Slovakian cryptocurrency exchange in September 2020 to steal digital money valued at $5.4 million. On Binance, the hackers created at least twenty fake identities. They exchanged the stolen money, and covered up the trail of transactions. Due to the anonymity of the user profiles, Binance was unaware of the hacker who was transferring funds. A powerful crypto scam center emerged in Binance, and the article discusses why scammers are attracted to cryptocurrencies.

The Rise Of Crypto Scams On Binance: Is This Because Of Its Weak Money-Laundering Checks?

Hack-related activities on Binance were conducted for at least $2.35 billion. Until mid-2021, Binance maintained inadequate anti-money laundering measures for its users. However, both new and current users of Binance were required to provide identity verification starting in August 2021. With approximately 120 million users globally, Binance handles monthly cryptocurrency deals worth hundreds of billions of dollars. A significant downturn rocked the industry in May. Its total worth decreased by 25% to $1.3 trillion.

Exactly Why Do Fraudsters Find Cryptocurrency So Appealing?

Cryptocurrency as a sector is quite unstable and has attracted a lot of attention from the general population. For scammers, this alone makes it a desirable and profitable business. They are becoming more popular with people for use in legal transactions. However, they are also being utilized more and more by crime syndicates, with a projected $10 billion in unlawful activity worldwide in 2020.

The Integration Of Anonymity And Speedy Transactions With No Delays

Cryptocurrency laws and regulations are constantly improving. In most cases, storing or transferring cryptocurrency doesn’t require confidential information. The blockchain makes it possible to follow transactions. However, scammers can create multiple wallets or accounts to make this more difficult. Even then, tracing the owner of such wallets is challenging. A similar case was with Binance when the hackers created several Binance accounts in just nine minutes to trade stolen cryptocurrencies. Due to the element of anonymity and speedy transactions, Binance could not detect the scammers.

Crypto Transactions Cannot Be Reversed

Only the person receiving the money can reverse them. Therefore, it is very difficult to get back money that has been sent to or taken over by a scammer.

The Whole Nature Of Cryptocurrency Is Digital

Since they are digital assets, storing them is not a big deal. Information about a crypto wallet may be stored without taking up any physical space. As a result, criminals might need to hack or phish with just a computer at their disposal.

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