Binance Ups Security Measures To Prevent Account Misuse

Binance, the world’s largest cryptocurrency exchange, has implemented new security measures to prevent the misuse of account features and improve platform integrity.

According to the exchange, the decision follows the discovery of account misuse that provided certain users with unfair advantages. “The new measures aim to foster a healthy and sustainable market environment that benefits all users,” it said.

Earlier this month, a Chinese trader lost $1 million after falling victim to a hacking scam involving a promotional Google Chrome plugin called Aggr. The trader accused Binance of failing to implement necessary security measures despite the unusually high trading activity on his account. He also claimed that the exchange did not take timely action even after he reported the issue. According to the trader, Binance was aware of the fraudulent plugin and was conducting an internal investigation but did not inform users or take preventive measures.

Binance has warned that it will take stricter actions against account misuse, including the suspension or termination of accounts if necessary. The exchange added that misuse of accounts harms its reputation and negatively affects the experience of the majority of users who adhere to the rules.

The platform offers various account types, including sub-accounts, managed sub-accounts, and fund manager accounts, which are essential for legitimate use cases. However, Binance said that bad actors have been found misusing these features to circumvent controls, access better fee rates, and obtain higher application programming interface (API) limits. The platform considers unauthorized access to other users’ accounts a severe breach of its Terms of Use, Know Your Customer (KYC), and Know Your Business (KYB) policies.

To combat account misuse, Binance has increased the monitoring of all account usage and related activities. The platform encourages users to report any suspected misuse incidents and offers rewards for verified cases. The reward amount will be determined on a case-by-case basis, and incidents can be reported to [email protected].

Binance’s new security measures are part of its ongoing efforts to combat security breaches. ZackXBT, a blockchain investigator, praised Binance on June 22 for its support during security incidents, noting the exchange’s active role in helping victims and providing incident response.

Binance CEO Richard Teng also highlighted the exchange’s collaboration with authorities to investigate a malicious attack on the Turkish crypto exchange BtcTurk, which resulted in the freezing of over $5 million in stolen funds.

Despite these efforts, Binance faces money laundering charges in Nigeria, where authorities have accused the company of illegally moving $26 billion out of the country.

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