Binance Co-Founder Criticizes X.com for Lax Crypto Scam Prevention

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Elon Musk’s X.com is under fire for its inadequate measures against the proliferation of cryptocurrency scams on the platform. Binance co-founder Yi He recently voiced her concerns, questioning whether Musk would take steps to address the issue.

Yi He’s frustration stems from a surge in impersonation scams that have targeted her directly. She shared images of accounts imitating her X handle (@heyibinance) and her proper name. These fake accounts misled users into clicking on links purportedly offering Binance-backed meme coins, which do not exist.

“I have not issued any new MEMEcoins. Clicking on the link will result in your money being stolen. Many people were tricked by this hacker link and lost a significant amount of money today. Is there any way to address this issue?” Yi He tweeted.

Binance Co-Founder and X

The issue of crypto scams on X.com is not new, but it has escalated significantly. Analysts have noted that the platform is a major hub for these scams. Scam Sniffer, a web3 anti-scam company, estimates that nearly $50 million is lost each month due to account impersonation on X.com.

Interestingly, Twitter accounts of Ethereum co-founder Vitalik Buterin, Indian Prime Minister Narendra Modi, and even Spiderman actorTom Holland’s accounts were victims of exploit. Scams tokens were promoted in an attempt to implement phishing attacks.

These scams often exploit the platform’s verification process. Musk’s controversial paid verification service, which allows almost anyone with a smartphone to register and receive verification, has exacerbated the problem. This has made it easier for scammers to create convincing fake accounts, leading to more users being deceived.

X.com and Elon Musk

While Musk has made several statements about tackling the “bot” and “spam” issues since taking over Twitter, now X.com, it remains unclear if he has specifically addressed the problem of cryptocurrency scams. His lack of response to Yi He’s recent post only adds to the growing concerns about the platform’s ability to protect its users from fraud.

The confusion over the new verification system and the ease with which scammers can exploit it have drawn significant criticism. Critics argue that the paid verification system undermines the trust and security that verification is supposed to provide. Scammers verify their accounts and as a result, buy credibility that the badge provides them, allowing them to implement their evil schemes.

Binance Co-Founder Highlights Broader Issue

The Binance co-founder’s post highlights a broader issue that has plagued social media platforms for years. The shift to paid verification has seemingly made it easier for scammers to operate, raising questions about the efficacy of current security measures.

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