Beware as Trading Platforms Launch Web3 Wallets, Intensifying Cryptocurrency Fraud Risks

The integration of Web3 wallets by mainstream trading platforms like OKX and Binance signals a blending of Centralized Finance (CeFi) and DeFi. This integration, while streamlining user experience, raises concerns about increased fraud risks. Two fraud cases within these integrated wallets are highlighted:

Fake BNB Yield Fraud:

Fraudulent groups impersonate exchange personnel, promoting a fake mining pool contract.Users deposit ETH, expecting BNB returns. However, the contract returns unexchangeable fake tokens.

Holding USDT Mining L1 Token Scam:

Perpetrators promise high returns in stablecoin mining in exchange for holding USDT.Users interact with maliciously authorized contracts, leading to opportunistic theft.

Conclusion:

Bitrace calls for enhanced user education on on-chain security and risk investigation.Suggested measures include tutorials, restricting functionalities for new users, and integrating third-party threat intelligence for a safer crypto environment.

#security🔒 #Binance #Web3Trends