Scam or scam is common in the crypto industry. Hardly a week goes by without something like this grabbing the attention of the crypto community. Recently, Changpeng Zhao, Binance boss almost fell victim to it.
Changpeng Zhao nearly got tricked into an alleged routine check
Changpeng Zhao, the boss of Binance was on the verge of having funds stolen. The scam incident, had it worked, would have cost him around $20 million. This Wednesday, August 2, the boss wanted to share his experience in order to alert the crypto community.
In his story, CEO of Binance explains the scheme used by scammers to steal his holdings. Their tactic was basically to generate addresses whose start and end letters match.
In this way, they hope to deceive users’ vigilance about the effectiveness of the operation they are performing. In general, many of them believe that this is a common verification of transactions. Which of course is not the case.
Concretely, the scammer’s plan is to carry out dust transactions. It is a process by which the scammer sends small amounts of crypto, often very small amounts, to a specific address.
The operation results in displaying the fake address in the victim’s wallet. What then happens is that while wanting to send funds, the victim copies the fake address, by mistake. She ultimately sends the funds to an illegitimate address.
According to Changpeng Zhao, the scheme is so pernicious and clever that even the most experienced crypto users can be scammed. Evidenced by the scam by this process of a very experienced crypto operator whose identity has not filtered.
His luck is to have quickly noticed the error. This allowed him to initiate in time, a procedure to freeze assets, preventing crooks from seizing them. “A quick reaction is essential in these types of situations”notes the boss of Binance, calling on the crypto community to be vigilant.
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