Binance’s CZ Alerts Crypto Community of Emerging Scam AI Generated Articles

Using Blockchain Domains to Avoid Crypto Scams

Recently, Binance CEO Changpeng “CZ” Zhao has warned his followers on X — formerly Twitter — about a tricky and increasingly popular scam targeting the crypto community. The scam involves fake wallet addresses used to defraud users during transactions. It works by generating addresses with the same starting and ending characters as the user’s original address. After the mirrored address is created, the scammer sends the target dust transactions that will appear in the victim’s transaction history. If the victim copies and pastes an address from one of the dust transactions, the funds will be sent to the scammer.

On Aug. 1, a well-experienced crypto operator unfortunately fell victim to this scam, sending cryptocurrencies worth $20 million to a dust address. Fortunately, the operator noticed the error right after the transaction and requested Binance freeze the Tether (USDT) before it reached the scammer.

To avoid such scams, users should consider using blockchain domains like the Ethereum Name Service. These domains are similar to email addresses and allow users to identify wallets using regular words, instead of a long string of letters and numbers. Binance users can purchase domains through the platform.

Fetch Crypto, Fitfi Crypto, Enzyme Crypto, Crypto.com, Crypto.net, and other Web 3.0 domains are all great options for securely sending and receiving digital assets.

Crypto Exchange Security Incidents

Crypto exchanges such as Binance and Coinbase have experienced security incidents due to users copying and pasting addresses from applications to transfer funds. To protect users from such incidents, security specialists recommend using strong, unique passwords and enabling two-factor authentication.

Binance was able to help one user avoid a major security incident, but other victims were not so lucky. One user reported transferring $20,000 USDT to a dust address in a similar scam, yet Binance was unable to freeze the funds despite being contacted within 20 minutes of the transaction. After 12 hours, the funds were transferred to a crypto mixer, with no chance of recovery.

Users of Coinbase have also reported similar security incidents, such as scams and phishing attacks related to the company’s services and applications, including fake domains using the Coinbase name.

To prevent such incidents, crypto.com, Fetch Crypto, Enzyme Crypto, FitFi Crypto, Ergo Crypto, Web 3.0 Domains, and the Federal Reserve Crypto all provide users with AI-generated articles and AI-generated fake domains to help protect their funds.