Key Points
- Binance introduces new security measures to prevent account misuse and enhance the platform’s integrity.
- Users are encouraged to report suspect incidents.
In an official announcement, Binance reported that there have been detected instances where certain account features on the platform are misused or exploited to gain unfair advantages, such as better fee rates and higher API limits over other users.
Binance revealed that the platform is committed to taking the necessary steps in order to ensure compliance, protect users, and keep the overall market integrity.
All these elements are essential to reinforcing confidence in the exchange and the crypto market in general. The exchange’s aim is to foster a healthy and sustainable market environment that is committed to prioritizing users’ interests.
As a result, Binance decided to take firmer actions against account misuse.
Stricter measures for addressing account misuse
Binance offers various account types which include the following:
- sub-accounts
- managed sub-accounts
- fund manager accounts
All these play an essential role in various genuine use cases. These features also have the potential to be missed by bad actors seeking to circumvent controls to either access or sell access to a better fee rate and higher API limits.
In the announcement, the exchange noted that any behavior that involves unauthorized access to other users’ accounts represents a serious breach of Binance’s Terms of Use and KYC/KYB policy.
Users expect fairness and efficiency from Binance and such behavior brings harm to the platform, detrimentally impacting the experience users have, and diminishing the contributions of most users who are compliant with all the rules.
In order to ensure that the account features are not misused, Binance enhanced the monitoring of all account usage and related activities.
The exchange said that it will investigate all potential or suspected incidents of misuse and take appropriate action to remedy misuse whenever necessary. Such actions include suspension or termination of the relevant accounts.
Binance takes its responsibility to lead the way in the crypto industry seriously, making efforts to ensure that the platform meets the highest compliance standards, offering a level of fairness for all users.
Such efforts are vital to enhance and safeguard the integrity of the platform.
Rewards for misuse reporting
Besides technological enhancements, Binance is also establishing a channel for users to report any account misuse incident that is encountered such as unauthorized selling of access to accounts.
Users who observe or suspect any cases of misuse are encouraged to report it to the exchange. Rewards will be offered for any verified cases of account misuse. The reward amount will be determined on a case-by-case basis.
User support can make a huge difference and help improve the platform. Users can send an email to report any issues to misuse-reporting@binance.com, according to the official announcement.
Not too long ago, Binance’s CEO, Richard Teng, said that the exchange collaborated with authorities to investigate a malicious attack on BtcTurk, a Turkish crypto exchange, and the move resulted in successfully freezing more than $5 million in stolen funds.
On X, Teng shared a message, explaining the freezing of stolen funds.
Binance is assisting BtcTurk with investigations and have frozen over $5.3M in stolen funds so far.
Our investigations & security teams work around the clock as part of our proactive efforts to protect the ecosystem from bad actors. We will provide further updates as relevant. https://t.co/8j6uMgOPm6
— Richard Teng (@_RichardTeng) June 22, 2024
Recently, Teng also shared important thoughts about the necessity of compliance and regulation in the crypto industry.