Binance addresses B.K.user case, crypto exchange committed to combating fraud
Mon, 13 Apr 2020, 01:46 am UTC
Crypto exchange Binance released a statement about the controversial B.K. user case.
In a lengthy statement, Binance explained that it came across false information against them relative to a user account that was blocked after an investigation from law enforcement. The exchange stressed that “We remain committed to combating fraud without compromising the truth, and would like to provide context and clarify the situation.
The victim of a listing fee scam who lost 3,995 ETH in funds ($625, 257 as of press time) was a Korean cryptocurrency project. It immediately reported the incident to Korean law enforcement agencies. Based on the reported file, an unidentified person gained unauthorized access to the victim’s emails and found that the victim was trying to list its cryptocurrency on various exchanges.
The suspect pretended to be a Binance representative and promised to help with the listing for a fee. As a security deposit, the suspect transferred the majority of the crypto worth 10 billion KRW to one account. The user behind the account which received the money was identified as someone with initials B.K.
The Korean law enforcement agency reached out to Binance and the latter cooperated.
“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,” Binance wrote.
In April 2019, the Ukrainian law enforcement agency reached out to Binance to inform it that it acted in accordance with the guidance from the Korean law enforcement. The Ukraine agency thanked the crypto exchange for its cooperation and confirmed that no further assistance was required.
“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 concluded.
Meanwhile, Binance also published an open letter to air its side about the controversy between TRON CEO Justin Sun and the DPoS-based crypto platform STEEM. Binance decided to stay neutral and insisted that it has no interest in the on-chain government beyond its ecosystem.
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