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Binance recovers stolen funds from DeFi exit scam

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  • Binance recovers over $300,000 stolen from a DeFi scam project
  • Says it has plans to refund victims of the fraud

Binance has announced that it has successfully retrieved over $300,000 crypto asset that was stolen by the operator of Wine Swap.

The crypto exchange firm stated that it followed the trail left by the operator of the scam DeFi project. 

Wine Swap is a decentralized finance token project that was launched on the exchange Smart Chain in October. The crypto asset had generated as high as $345,000 worth of cryptocurrency during its launching.

According to the information released by the firm, the scam was perpetrated by the operator by moving the close to 20 different crypto assets held in Wine Swap address to a private address.

Those coins were transferred through a cross-chain transfer. The coins were first moved from Binance Smart Chain to Binance Chain. Later, the scammer moved the coins to Ethereum.

The crypto exchange firm also noted that a very small amount of the fund was moved to two exchanges. It was also reported that part of the funds was moved to Binance Bridge. 

Bridge helps to give access to inter-blockchain liquidity activities for decentralized applications on the Binance Chain and Binance Smart Chain.

How Binance recovered the funds

The firm made it known that when the scam was discovered, their team of security experts began to trail the transactions that were being done on the project.

This enabled them to be able to identify the perpetrator of the scam. However, by the time he was identified, he had converted the funds into a Stablecoin, BNB, ether, and LINKs token.

The crypto exchange firm went on to contact the scammer who immediately returned the stolen funds to the company.

The exchange firm said it has studied the addresses that fell victim to the fraud. It was also announced that a plan is being made on how the fraud victims would be refunded.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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