CZ responds after failing to block potential scammers trading account

06 May, 2019
by Ryan Boltman
CZ responds after failing to block potential scammers trading account

This past weekend saw a twitter personality exit scam their paid group, citing that they were hacked and had lost thousands of dollars in paid members investment funds. 

One twitter user by the name of @Socal_crypto took charge of the community investigation to find out where the funds were and who the perpetrator was. The user was also Doxxed and his public information was placed online for the community to see.

@Socal_crypto put together over 21 hours worth of evidence he had attained through his own investigation and reported it to both Binance and Bitmex, as they addresses acquired in the investigation let to both of those exchanges.

However, nothing had been done and the addresses were consequently drained, most likely by the scammer. @Socal_crypto tweeted about his disappointment, saying "I am extremely disappointed at how @binance and @BitMEXdotcom handled our report of the Raccoons accounts. Truly goes to show these exchanges don't give a fuck about you or your funds, they just want their fees. Great leadership there @cz_binance and @CryptoHayes."

Binance CEO Changpeng Zhao commented on the matter by saying that if Binance was to freeze accounts whenever a random person files a support ticket, how would that look? Also following up his argument, CZ made sure to mention that users need to "keep their funds safe in the first place"

Socal_Crypto brought up a previous incident as an example of where Binance assisted in a timely manner, however CZ commented on this by commenting on the fact that he was personally responding to the incident and that techniques for such incidents are limited.

Ultimately, an exchange cannot really be held liable for users sending their funds to fraudsters, nor can they start blocking trading accounts as per other users requests. The community may be divided about how the matter is handled, however one thing is clear, as per Socal_Cryptos recent tweet:

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