Investors Warned as Binance Scams Exploit API Fear

Binance, the world’s largest cryptocurrency exchange, has issued a cautionary notice regarding a growing scam involving fraudulent customer service calls aimed at manipulating users through false claims about API changes. The alert comes from CEO Richard Teng, who took over leadership from co-founder Changpeng Zhao (CZ) in November 2023 [1]. Teng emphasized the importance of user vigilance, particularly in light of increased phishing and social engineering attacks targeting Binance users.

According to Teng, the fraudulent actors behind these scams typically contact users under the pretense of offering support from "Binance customer service." They often claim to represent Binance’s technical team and guide victims through so-called "necessary API updates" or "security modifications," which are designed to extract sensitive login credentials or payment information [1]. These calls are often accompanied by pressure tactics, urging users to act quickly to avoid supposed account suspensions or trading restrictions.

The issue reflects a broader trend of rising impersonation scams in the cryptocurrency industry, where attackers exploit the growing popularity of digital assets and the trust users place in major platforms like Binance. Teng reiterated that Binance does not initiate unsolicited calls or request sensitive user data via voice or messaging platforms [1]. The company has advised users to verify all communications through official channels, including the Binance website and verified customer service email addresses.

In addition to the scam warning, Teng highlighted Binance’s renewed commitment to regulatory compliance, stating that the exchange is now "the most regulated exchange around the world" [1]. The exchange has recently received regulatory approvals in countries such as the United Arab Emirates and France, continuing its efforts to rebuild credibility after a series of legal and regulatory challenges. These include a $4.3 billion fine imposed in the U.S. and CZ’s imprisonment in 2023 for violating anti-money laundering laws [1].

Teng’s leadership has focused heavily on aligning Binance with global financial regulations, a departure from the more decentralized and unregulated approach previously taken by CZ. The company has also been cooperating with regulators in multiple jurisdictions, including those in Europe and Asia [1]. This strategic shift is seen as a critical step in Binance’s long-term sustainability and trust-building efforts in the increasingly scrutinized crypto industry.

As the exchange continues to navigate regulatory landscapes across different countries, it remains under the spotlight for both its compliance efforts and security challenges. The recent scam alerts underscore the need for enhanced user education and proactive security measures to protect the interests of individual investors and the broader market.

Source: [1] Binance's Most Regulated Crypto Exchange Globally: CEO Richard Teng (https://u.today/binances-most-regulated-crypto-exchange-globally-ceo-richard-teng)