Investing.com | Editor Hari G
Published Nov 13, 2023 02:44AM ET
NEW YORK – In a dramatic turn of events, Binance has successfully frozen approximately $11.8 million worth of cryptocurrency assets stolen from executives who were lured into a kidnapping scheme in Montenegro. The executives, representing an unnamed client company, were deceived into attending a fraudulent business trip and subsequently abducted. During this ordeal, they were forced to transfer their holdings, primarily in the stablecoin USDT, to a Tron wallet operated by the perpetrators.
Changpeng Zhao, CEO of Binance, revealed the sophisticated scam and the subsequent freezing of the stolen funds on social media platform X on Sunday. Zhao explained that while Bitcoin transactions are traceable, the ability to freeze these assets is contingent on them being transferred through centralized exchanges like Binance. This action by Binance and its partners prevented the criminals from accessing over 90% of the illicitly obtained funds.
The incident has reignited discussions about the role of centralized control within the cryptocurrency ecosystem, which is often celebrated for its decentralized nature. This successful intervention by Binance underscores both the potential vulnerabilities in the crypto space and the measures that can be taken to counteract criminal activities.
In related news reflecting heightened vigilance within the crypto industry, rumors have surfaced about Hamas accumulating Bitcoin for unauthorized activities. This has prompted significant players in the market, including Coinbase (NASDAQ:COIN), to enhance measures against illegal fund transfers. Coinbase asserts that blockchain technology could be instrumental in curbing terrorism financing.
Furthermore, as part of its strategy to comply with regulatory demands and reshape its global presence, Binance has announced it will cease accepting deposits in Russian rubles (RUB) beginning November 15. This move follows Binance’s sale of its Russian subsidiary to CommEX, a Russian-based cryptocurrency firm. Binance users have until January 20, 2024, to withdraw any remaining RUB balances. This decision aligns with Binance’s earlier announcement in September to withdraw from the Russian market amidst evolving geopolitical and economic landscapes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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