Binance takes credit for thwarting an exit scam attempt on its blockchain

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Binance announced on Wednesday the successful recovery of $ 344,000 in funds from the attempted exit scam of Wine Swap, a Binance Smart Chain (BNB) project.

Wine Swap was an automated market maker platform similar to Uniswap launched on October 13th. Within an hour of launch, it had amassed $ 345,000 in funds, which were promptly withdrawn from the platform by the creators of Wine Swap.

The funds were then distributed in different directions in an attempt to get them out of the Binance Smart Chain. Most of it was traded with the Ethereum blockchain, although a part was also sent to Binance’s centralized bridge and two other exchanges. These were promptly frozen, Binance said.

The Binance team was subsequently able to identify the creators of Wine Swap through the chain analysis. The perpetrators then returned the money after learning that they had been captured.

The money should be returned in its original denominations after the alleged scammers have converted some of it into other tokens.

The story isn’t much different from DeFi hacks like dForce or the bZX September hack. In all cases, the authors were captured through chain analysis or other external factors.

Binance claims that it cannot control funds on the Binance Smart Chain, not even by freezing them. Only those who arrive at the exchange are under the control of the company.

The incident illustrates how it might be possible for hackers and scammers on Binance Smart Chain to evade the acquisition using some of the decentralized bridging options.

Nonetheless, the Smart Chain ecosystem remains isolated: Binance largely controls validation through its BNB share, and bridges appear to be a useful bottleneck for strengthening monitoring on the chain.

Binance Smart Chain is a smart contract-enabled blockchain launched by the exchange. It is fully compatible with the Ethereum virtual machine and is part of the company’s decentralized finance strategy, dubbed “centralized decentralized finance” by Binance CEO Changpeng Zhao.

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