Binance, the world’s leading cryptocurrency exchange, has implemented new security measures to prevent the abuse of account features and uphold the platform’s integrity.
This decision comes in response to the discovery of account misuse that has unfairly benefited certain users. The new measures are designed to foster a fair and sustainable market environment that prioritizes the interests of all users.
Binance has warned that it will take stricter actions against account misuse, including the suspension or termination of accounts if necessary. The exchange has emphasized that such misuse damages the platform’s reputation and has a negative impact on the experience of the majority of users who abide by the rules.
The platform offers different types of accounts, including sub-accounts, managed sub-accounts, and fund manager accounts, which are essential for legitimate use cases. However, malicious users can exploit these features to bypass controls and gain access to better fee rates and higher application programming interface (API) limits. Binance views any unauthorized access to other users’ accounts as a serious violation of its Terms of Use, Know Your Customer (KYC), and Know Your Business (KYB) policy.
To address account misuse, Binance has stepped up the monitoring of all account usage and related activities. The platform encourages users to report any suspected incidents of misuse and offers a reward for verified cases. The amount of the reward will be determined on a case-by-case basis, and users can report misuse incidents to [email protected].
In its efforts to enhance security measures, Binance has made several attempts to combat security breaches. On June 22, blockchain investigator ZackXBT praised Binance for its support of the broader community during security incidents. He noted that while Binance often faces criticism from the media, its security team actively works to assist victims and provide incident response, demonstrating a commitment to community support that goes beyond mere words.
According to Binance CEO Richard Teng, the exchange collaborated with authorities to investigate a malicious attack on Turkish crypto exchange BtcTurk, resulting in the successful freezing of over $5 million in stolen funds.
Binance is currently facing money laundering charges in Nigeria after authorities accused the company of illegally moving $26 billion out of the country.
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