Binance Insiders Allegedly Helped Chinese Users Skirt Security Protocols

1. Binance employees helped users bypass KYC protocols.
2. Evidence points to official Chinese chat rooms.
3. Techniques involved falsifying bank documents and exploiting vulnerabilities.

In a move towards increased transparency following the FTX debacle, Binance, the world’s largest cryptocurrency exchange, has found itself embroiled in a new controversy. A recent report alleges that Binance insiders have been assisting users in skirting security protocols.

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A CNBC investigation reveals that employees and volunteers at the company may have been helping Chinese customers circumvent Binance’s Know Your Customer (KYC) controls. The evidence points to the exchange’s official Chinese-language chat rooms, which boast over 220,000 registered users. Within these chat rooms, users are said to have shared messages detailing methods to bypass KYC, residency, and verification protocols.

The messages in question are believed to have originated from accounts linked to Binance employees or trained volunteers, known as “Angels.” These techniques involve falsifying bank documents, providing incorrect addresses, and exploiting other system vulnerabilities. 

A Binance representative responded to these allegations, stating that action has been taken against employees found to be violating internal policies or making inappropriate recommendations.

This news comes at a time when China is cracking down on cryptocurrencies, with a severe ban initiated in 2021 and the prohibition of crypto exchanges since 2017. Chinese users who manage to dodge KYC requirements to access Binance may face serious consequences if discovered.

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