Recently, we came across false information spread about Binance in relation to a user account that was blocked after investigation from law enforcement. We remain committed to combating fraud without compromising the truth, and would like to provide context and clarify the situation.
On November 8, 2018, a Korean cryptocurrency project (the “victim”) was a victim of a listing fee scam and lost 3,995 ETH in funds, after which they reported this incident to Korean law enforcement agencies. According to the police report filed with Korean law enforcement, an unidentified person (the “suspect”) had gained unauthorized access to the victim’s internal emails (incoming and outgoing emails) and found out the victim was trying to list its cryptocurrency on various exchanges.
The suspect then sent emails impersonating himself as a ‘Binance representative,’ promising to help list the victim’s cryptocurrency on Binance, for a fee. As a security deposit from the victim, the suspect received a remittance in cryptocurrency (ETH) worth approximately 10 billion KRW. According to the conducted investigation, a user on Binance was then identified as receiving a majority of the stolen funds -- this user’s initials are B.K.
On January 18, 2019, a Korean law enforcement agency reached out to Binance requesting for a transfer of the scammed funds from B.K.’s account back to the victim. After we performed all necessary due diligence steps internally, Binance complied with the request from Korean law enforcement and completed the return of funds. The owner of this account, B.K., was informed of the Korean law enforcement agency’s criminal investigation into this case and their decision. Additionally, we provided him with the contact details of the Korean law enforcement agency should he decide to pursue further. He was also advised to contact his local law enforcement agency.
In April 2019, a Ukrainian law enforcement agency contacted Binance on behalf of the Ukrainian user, B.K. Binance informed Ukrainian law enforcement that we had acted in accordance with guidance from Korean law enforcement. Ukrainian law enforcement thanked us for our cooperation and confirmed that no further assistance was required.
Below are screenshots of the Korean law enforcement agency’s communication with Binance, titled “Request for Cooperation in Investigations,” upon which we acted in accordance with official guidance from Korean law enforcement. Binance works closely with law enforcement agencies around the world and we are ready to provide additional information and documentation if requested by the law in order to fight fraud and bring justice to these cases. Binance will not hesitate to take legal action against anyone who deliberately tarnishes its reputation through misrepresentation or misinformation.
- Binance Team