Binance’s indecision to freeze BNB wallets drew controversy in this $11M rug pull

Source: Telegram.Related: Binance pushes brand-new stablecoin as it confirms plan to cease BUSD supportThe exchange takes actionOn January 29, 2021 Binance reacted to one of the PopcornSwap victims. Blockchain data reveals that at the time of these complaints, Binance did not have any belongings of the taken funds, nor was it associated with the entity that stole users money.Contrary to the declaration from Binances client service agent, information from BNB Smart Chain shows that the scammers address was not frozen prior to October 6, 2022. Binance reacts In a conversation with Cointelegraph on August 31, a representative from Binance confirmed that the October 6, 2022 proposal to freeze address 0xFd6042Df3D74ce9959922FeC559d7995F3933c55, also understood as “Fake_Phishing7,” was made by Binance. They stated:” At the demand of PopcornSwap victims, Binance proposed blacklisting the assaulters address alongside the BNB Bridge assailant in October 2022, which was submitted by the BNB Chain group and authorized by network validators.” Binance likewise confirmed, in contract with blockchain information, that the funds were never ever moved into Binances belongings.

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The BNB held in the fraudsters account has grown to over $10 million in value since then as users speculated on whether or not the funds had actually been frozen.An examination exposes that contrary to popular belief, Binance is in truth able to freeze private wallet addresses on BNB Chain, so long as all validators approval. Source: Telegram.Related: Binance pushes brand-new stablecoin as it validates strategy to stop BUSD supportThe exchange takes actionOn January 29, 2021 Binance reacted to one of the PopcornSwap victims. Blockchain data reveals that at the time of these complaints, Binance did not have any belongings of the stolen funds, nor was it connected with the entity that stole users money.Contrary to the statement from Binances consumer service representative, data from BNB Smart Chain reveals that the fraudsters address was not frozen prior to October 6, 2022.

Binance reacts In a conversation with Cointelegraph on August 31, an agent from Binance verified that the October 6, 2022 proposition to freeze address 0xFd6042Df3D74ce9959922FeC559d7995F3933c55, likewise referred to as “Fake_Phishing7,” was made by Binance. The representative likewise verified that this was simply a proposition, which could not be implemented without the approval of validators. In this case, the proposal was agreed to unanimously by all network validators. They mentioned:” At the request of PopcornSwap victims, Binance proposed blacklisting the aggressors address alongside the BNB Bridge enemy in October 2022, which was sent by the BNB Chain team and approved by network validators.” Binance also confirmed, in agreement with blockchain information, that the funds were never moved into Binances belongings. “We can validate that the scammer did not move funds to Binance, and we do not have control over the funds,” they specified. “BNB Chain is an open-source and decentralized environment; wallets and/or their funds can not be frozen at will [and] governance choices are coordinated by the neighborhood.” Binance claimed that the investigation has actually not been closed, which the exchange stands ready to abide by authorities if it can be of support “This case stays under investigation, and our investigations team is always all set to support law enforcement in pursuit of those accountable,” it stated.The Pocornswap rip-off: a cautionary taleVictims of the PopcornSwap fraud lost over $2 countless their hard-earned money as a result of it. Seeing that Binance was the designer of BNB Smart Chain, they turned to it for aid. The exchange refused to help pointing out the decentralized nature of blockchains. Binance subsequently reversed course and froze the scammers private address with the contract of BNB Chain validators. The PopcornSwap rip-off also functions as a cautionary tale of the dangers of utilizing clever contracts. If a wise agreement consists of a loophole that permits an opponent to drain pipes users funds, the victims will face an uphill struggle attempting to get repaid by validators after the attack is completed, because forks of a blockchain essentially require consentaneous consent to be implemented. Such is the nature of blockchains. In addition, remember that regardless of their decentralized claims, entities can in fact, exercise control over users possessions if they wish. Cointelegraph Editor Zhiyuan Sun contributed to this story. Related: Multichain victims look for responses in $1.5 B exploit as new evidence emerges