Binance Released a Report about Online Investment Schemes

Binance and its report

On June 30, a major crypto exchange Binance released a report about crypto scams. It is worth mentioning that Binance formed Binance Sentry in 2018. It is an internal risk intelligence unit within Binance’s security team. 

As a reminder, Binance is one of the largest crypto exchanges in the world. The report prepared by the major crypto exchange contains many interesting details. According to the report, Binance Sentry observed reports of fraudulent investment schemes. People should take into account, investment schemes promised quick or exponential returns on cryptocurrency investments. 

This is not the end of the story, as it is not only about the crypto. Fraudulent investment also covers forex, binary options, and contracts for difference.

Binance and crypto scams Crypto-related crimes

Let’s have a look at this report published on the last day of June. Based on the information taken from this report, scam organizations are frequently the subject of regulatory warnings. However, they often use different, seemingly unrelated brands. 

People should be aware of this fact. For example, what seems like dozens of projects, can represent different branches of one big corporation. Moreover, in some cases, one brand might be about crypto while another one may focus on forex or contracts for difference.

Interestingly, some fraudulent organizations create false consumer organizations. Such entities can steal even more funds from the customers after users become more suspicious that the organization is a cam and victims try to report such organizations. 

Moreover, due to the global nature of many scams, it is quite hard to take legal action against them. Importantly, victims are living around the world and perpetrators may live in a country with different laws. As a result, it is hard for law enforcement agencies to establish connections between victims. Cryptocurrency investors should pay more attention to a report prepared by Binance when it comes to dealing with various organizations. 

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One Response

  1. Avatar Srikanth Jatharakonda December 9, 2020

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