A new investigation claims that users around the world are manipulating Binances billion-dollar security protocols through inside help. 1482 Total views 12 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT Binance, the worlds largest cryptocurrency exchange, has madesignificant efforts to be a leader in transparency in the industry since the FTX scandal. However, a new report claims that Binance insiders are allegedly helping users bypass security protocols.
According to a CNBC investigation, employees and volunteers at Binance have allegedly been aiding customers in China to subvert the exchanges Know Your Customer Controls (KYC).
The report points to Binances official Chinese-language chat rooms, in which more than 220,000 users were registered. There, users are reportedly able to access shared messages with techniques to bypass the exchanges KYC, residency and verification protocols.
These messages allegedly stemmed from accounts that were identified as employees of Binance or trained volunteers who go by the title Angels.
Techniques shared included forging bank papers, attesting false addresses and other simple system manipulations. A Binance spokesperson is reported saying:We have taken action against employees who may have violated our internal policies, including wrongly soliciting or making recommendations that are not allowed or in line with our standards.
The co-founder of Binance, Changpeng Zhao, who is usually active on social media, has made no comment at the time of writing. Zhao previously took to Twitter to denounce rumors spread on the Chinese WeChat platform.
Binance did not immediately respond to Cointelegraphs request for comment.
Related: India subjects crypto transactions to Anti-Money Laundering law
This development surfaces while China continues to implementa strict ban on cryptocurrencies, which began in 2021, with crypto exchanges outlawed in 2017. Chinese users evading KYC rules to access Binance could face repercussions if uncovered.
Some havecalled on the Chinese government to reconsider the crypto ban, though regulators have not budged.
Meanwhile, Chinese officials continue apace with plans for a central bank digital currency, the digital yuan. Recently, millions were spenton adoption efforts. #China #Business #Security #KYC #Binance #Regulation
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