Binance, the leading cryptocurrency exchange globally, has unveiled fresh security protocols to prevent the abuse of account functionalities and bolster the integrity of its platform. This decision comes in the wake of the detection of account misuse, enabling certain users to gain unfair advantages. The new measures are designed to foster a healthy and sustainable market atmosphere that places the interests of all users at the forefront.
The platform has issued a stern warning that stringent actions will be taken against any account misuse, potentially resulting in the suspension or termination of accounts. Binance stressed that such misuse not only tarnishes the reputation of the platform but also adversely affects the experience of the majority of users who abide by the rules.
Binance provides a range of account options, such as sub-accounts, managed sub-accounts, and fund manager accounts, which are crucial for legitimate use cases. However, malicious actors can exploit these features to evade 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 combat account misuse, Binance has bolstered its monitoring of all account activities and usage. Users are encouraged to promptly report any suspected instances of misuse, with a reward offered for verified cases.
In a related development, Bybit has overtaken Coinbase in market share following a decline in Binance’s standing. The amount of the reward will be determined on a case-by-case basis, and users can report misuse incidents to [email protected].
Binance’s commitment to enhancing its security measures is part of its broader efforts to combat security breaches. ZackXBT, a blockchain investigator, commended Binance on June 22 for its assistance to the wider community during security incidents. Despite facing criticism from the media, Binance’s security team actively aids victims and provides incident response, demonstrating a dedication to community support that transcends mere rhetoric.
According to Binance CEO Richard Teng, the exchange collaborated with authorities to probe a malicious attack on the Turkish crypto exchange BtcTurk, resulting in the successful freezing of over $5 million in stolen funds. Binance is currently confronting money laundering allegations in Nigeria after authorities accused the company of unlawfully transferring $26 billion out of the country.
In a magazine feature, it is highlighted that ‘Bitcoin Layer 2s’ may not truly be L2s at all, underscoring the significance of this distinction.