Moreover, the top management of Binance also exercises zero-tolerance behavior towards the accounts involved in illegal, unethical, and misleading trading activities.
As a result of this current tilt in the policy Binance, the world’s biggest exchange has banned three of its investors after complaints were filed against them.
This means those three investors will not be able to access their Binance wallets and will not be able to withdraw their assets.
Binance CEO Makes a Strong Statement
Following the allegations of misusing Binance’s services, Binance has banned the accounts of three of its traders.
The CEO of Binance Changpeng Zhao on Saturday, 10th December 2022, said that he and his company does not want to serve any client that is unethical, unlawful, or unreasonable.
The ban came after three users criticized Binance’s actions on alleged fund theft. The CEO made it clear that Binance will not tolerate any such actions and any users that have an issue with the exchange’s approach to bringing transparency will not be welcomed at any cost.
He also added that if you cannot think positively, you cannot be beneficial to our community.
The Incident Happened During the Twitter Conversation
On December 08, 2022, a Twitter user named CoinMamba complained about his loss. He claimed that a stolen API key associated with cryptocurrency trading company 3Commas was used “to perform transactions on low cap cryptocurrencies to drive up the price to earn the profits.
During the series of revelations, the users also criticized Binance due to the company’s poor support over the matter.
However, in response to that Binance’s CEO himself communicated with CoinMamba about the issues via a series of tweets.
CZ replied to Mamba, by saying that there is no such mechanism available for Binance to be certain about the possibility of user did not steal their API keys.
He also said it might be possible that the transactions were performed by using the API keys you provided. Or else, we’ll just be paying for users’ API keys to be lost.
As the user kept complaining about the issues the CEO of Binance made it clear that the platform will not tolerate any suspicious activity and such accounts will not be tolerated.
Binance later on also banned that account, with a three-day grace period to withdraw funds. On the other hand, the user argued that 3Commas rejected any misuse of its systems or records.
That’s why it is not responsible for the stolen APIs. In response to that 3Commas support team clarified the situation by making an official statement:
“No encryption mechanisms were hacked, and no compromises of 3Commas’ account security databases happened.”
Another Twitter user named ‘Bitbit’ shared his opinion on the matter by saying that Binance must find out the account behind the hacking of 3commas API. It is simple Binance should put all the accounts on hold which caused offers to go high up.
He further said that I hope that people who are running Binance are aware that what is hacker planning to do moving forward. As the result, overall three users were blocked by Binance.
Following the demise of FTX, Binance’s CEO back in the mid of November made it clear that Binance is going to be very strict against all those traders who one way or another will be involved in manipulating the things on Binance for their gain.
Binance has emerged as the clear victor after the demise of the FTX as Binance’s overall usage has increased by 30%.
This has also made Binance the world’s biggest cryptocurrency exchange by daily trade volume. As a huge number of investors are investing using Binance, it is the responsibility of Binance to make things clear and lawful, the CEO of Binance Changpeng Zhao said.