Binance is silent about the facts about the fraud from two years ago
Date: 2023-07-15 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Cryptocurrency exchange Binance came under scrutiny due to a rag pull in 2021, which resulted in users losing $15 million worth of BNB tokens.
It's been two and a half years since the crypto exchange froze the stolen funds. However, crypto users still criticize Binance for not knowing what happened to the money.
What happened
The problem is related to PopcornSwap, a protocol released on the BNB network in January 2021. It pumped liquidity almost instantly after launch, stealing more than $2 million worth of tokens.
Despite the fact that Binance managed to freeze users' assets, mitigating the consequences, the situation with tokens has not been clarified.
"This shows that they Binance selectively interfere with transactions on the network as a centralized authority," suggested one Twitter user under the nickname Neonmatrixbot.
Pointing to the exchange's ability to freeze tokens on the BNB network, as well as the possibility of burning and reissuing tokens, Neonmatrixbot wondered why the decision was not made.
Moreover, despite the community's attempts to contact Binance directly through various channels, including private messages, support tickets, tweets to the head of the platform, Changpeng Zhao, and contacting lawyers, the situation has not been clarified in any way.
Compensation for COVER users
A year before the PopcornSwap incident, Binance faced another problem – the collapse of the COVER token. The attacker took advantage of the vulnerability of the decentralized finance protocol Cover and withdrew $3 million from there, despite the fact that he subsequently returned all the money, the project's token collapsed by more than 80%.
Then Binance allocated $10 million from the SAFU fund to compensate for losses to users. The compensation plan presented by the project team does not apply to Binance users, so the company decided to restore justice and cover the losses of its traders.
