Binance permanently blocked 297 accounts and identified 102,000 accounts that committed fraud during the IEO Megadrop Lista DAO event on June 19.
297 Sybil accounts were permanently blocked by Binance after the IEO Megadrop Lista DAO event
Recently, the IEO Megadrop Lista DAO event of the world's largest crypto exchange Binance attracted more than 1 million participants. However, this event is not only an opportunity for real users but also a delicious bait for fraudsters. According to statistics, there are more than 102,000 accounts discovered to be fake accounts and this number is still being updated.
Binance said that after the Megadrop IEO event, 297 main accounts were banned, one Airdrop hunter even collected 9,000 KYC accounts. There were more than 1 million participants in total, of which 102,000 accounts were identified as fraudulent accounts by risk control. The frozen…
— Wu Blockchain (@WuBlockchain) June 26, 2024
According to Wu Blockchain , Binance has implemented strict controls to ensure the fairness of the event. A total of 297 accounts were permanently blocked by Binance, of which one account was discovered to have used up to 9,000 KYC accounts to "plow Airdrop".
Fraudsters bought large numbers of KYC verified accounts and went on a mission to receive Airdrop rewards. When the event ends, they will collect all rewards into a single account and sell them.
The above actions were detected by Binance's control system and strict measures were taken. The violating accounts have now been frozen by Binance and requested to return assets. According to the terms of Binance Megadrop, if fraudulent behavior is detected such as unreasonable increase in volume or using a series of sub-accounts for self-trading, Binance has the authority to inspect and punish.
The move to prevent fraud during the recent Megadrop Lista event is part of Binance's efforts to bring fairness to real users. Binance stated:
"Funds recovered from fraudulent accounts will continue to be used for future project activities to reward real users.We will be uncompromising in implementing sanctions against bot accounts that harm users and project partners.”
Binance also asserted that its risk control measures only target accounts determined to be fraudulent. If any user feels that their account is not Sybil, they can file a complaint to get their Binance account back.
Binance's announcement on sybil prevention after the Megadrop Lista event
Megadrop is Binance's new Token Issuance platform that was just launched on April 18, 2024. This platform is a combination of Binance Simple Earn and Binance Web3 Wallet to help users have early access to projects and receive Airdrop. Projects launched on Megadrop will definitely be listed on the Binance exchange.
Lista DAO is the second project after BounceBit to be released on Binance's Megadrop platform, with over 10% of the total supply allocated to the event. Users who participate in locking BNB during the event can receive nearly 37 LISTA (about 25 USD) for only spending 1 to 2 USD in fees. This means that a user using more than 9,000 Sybil accounts can earn more than 200,000 USD if they successfully pass Binance's control system.
Since listing on June 20, LISTA's price has seen an increase of more than 30% despite bad news flooding into the market, currently trading at 0.76 USD.
1h chart of LISTA/ USDT pair on Binance at 02:30 PM June 27, 2024
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