Binance embezzlement charges is what could qualify as a class-action lawsuit, against the global exchange firm, currently being investigated by HackControl, a top cybersecurity firm.
Contained in the Binance embezzlement charges are allegations that the exchange giant mismanaged and misappropriated funds without due consent and explanations adding that the exchange firm kept communication lines on with the cybersecurity outfit but did not release their funds.
HackControl also revealed that two years ago, the exchange firm froze an account with about $858,999 worth of crypto with the owner of the account pressing charges against Binance. According to the owner of the account, the funds have been on hold for about a year and a half containing different crypto coins like Bitcoin, Ethererum, Litcoin, EOS, etc.
Binance embezzlement charges refuted
The exchange firm, while defending itself and responding to the allegations in its blog post, explained happenings that lead to the charges against it. Binance revealed that the account was blocked on request from law enforcement sighting another scam victim of about 3,995 Etherum as part of the reasons.
Reportedly, an anonymous person got unauthorized access to the email of the scammed victim (a Korean crypto exchange) impersonating an agent of Binance. The imposter took advantage of the Koreans attempt to be listed on other exchanges to cart away the 3,995 ETH as initial deposit or listing fee.
Returned funds to the Korean exchange
The global crypto exchange firm went further to affirm that acting on the instructions of the Korean law enforcement, it had returned the scammed funds to the Korean exchange last year.
Also, last year, the Ukrainian law enforcement agency got in touch with Binance for B.K (who received the 3,995 ETH) after due correspondence, “the agency thanked us for our cooperation and confirmed that no further assistance was required,” Binance added.
Binance, in a note of warning on its blog, said further that they won’t hesitate to take legal action against people who intentionally attempt soiling their image.
Damages worth $3 million to be paid
Even beyond the Binance defense, the cybersecurity outfit makes further claims of the global exchange firm wrongfully freezing innocent users’ accounts. Reportedly, victims of frozen accounts were uniting to pull a class action lawsuit against Binance with damages worth $3 million to be paid alongside several Binance staffs being suspected for fund misappropriation.
Nonetheless, beyond Binance embezzlement charges, the firm has committed itself to fight against fraudulent activities.