Binance bans hundreds of users for trading abuse

Binance has closed more than 600 user accounts for abusing the Binance Alpha platform through coordinated bot activity.

In an October 19 announcement, Binance revealed that the targeted accounts used “bot farms” to manipulate Alpha’s reward structure.

What is binance alpha?

Binance Alpha is designed to focus on early-stage Web3 projects and allow users to get pre-listing access to potential Token .

As a result, the platform has achieved significant success this year, with volume surpassing $115 billion.

However, that success has attracted abuse from some community members.

Some users are said to have deployed bots to collect Alpha points en masse, a mechanism that determines access to Token Sale and Airdrop. This automation allows a small number of people to dominate allocations that should Capital be more evenly distributed.

To clarify, blockchain analytics firm Bubblemaps previously discovered similar patterns on ChainOpera, a major project on the BNB Chain.

The company found that a coordinated group allegedly controlled half of the highest-earning wallets, generating around $13 million through synchronized transactions.

How did binance react?

In response, Binance said it has upgraded its monitoring tools and feedback channels to more effectively identify and prevent this behavior.

binance new system

The new system allows users to report suspicious accounts and, if verified, receive up to 50% of the recovered funds. To be eligible for XEM , these reports must include verifiable data such as screenshots, wallet details or IP addresses.

While the measure is intended to promote fairness, it has caused discomfort for some users, with critics saying it risks turning Binance’s ecosystem from a social farming model into one defined by surveillance and a lack of trust.

“[It's] one thing to ban users who abuse the ecosystem, another thing to create a whistleblowing machine within your own platform. The nature of the ban itself shows that you are shifting the model from social farming to supervised farming and farming under supervision,” said crypto analyst Demiter.

Meanwhile, this sentiment reflects broader concerns that Binance's execution model could evolve from open collaboration to tight oversight.

“Binance is doing what they have to do, but if they go too far with this, it will start to look like a police state instead of a community program,” the analyst added.

However, the exchange still maintains that accounts that violate their Terms of Use risk permanent suspension and loss of Airdrop rewards.

Meanwhile, the new enforcement comes amid user frustration over recent technical issues that froze accounts and caused flash crashes on some trading pairs.

Therefore, Binance's latest move shows an effort to rebuild user trust by prioritizing integrity and transparency in how its community approaches early crypto projects.