Binance Creates 'Antidote' for Crypto Scams as Vanguard Maintains Stance on Bitcoin ETF; DOJ Charges Brothers in $25M Crypto Theft
Summary:
In a two-pronged crypto-related update, Binance's security team has created a unique "antidote" to counter address manipulation scams identified through an algorithm, reducing potential losses for investors. Meanwhile, Salim Ramji, the new CEO of Vanguard, has affirmed that there are no plans to reverse the financial firm's stance against launching a Bitcoin ETF. In a separate incident, the US Department of Justice has accused two siblings of misappropriating $25 million via a cryptocurrency scam.
In an exclusive revelation to Cointelegraph, security professionals from Binance described the creation of their "cure" to combat the rising prevalence of address manipulation scams. Salim Ramji, the newly appointed head of Vanguard, has affirmed that the financial institution will continue its stance against launching a Bitcoin ETF. In other news, the U.S. Department of Justice has alleged that two siblings orchestrating a cryptocurrency theft operation have pilfered $25 million.
In response to the surge of fraudulent address manipulation scams, the security specialists at Binance have devised a "cure". These scams fool investors into sending money to a misrepresented address. The safety experts from one of the world's leading crypto exchanges crafted an algorithm capable of identifying millions of tainted crypto addresses, as revealed in a statement shared with Cointelegraph. "Our solution lies in an innovative approach to pinpointing tainted addresses, which aids in warning users before they transfer funds to hackers", the team further explained.
Address manipulation scams occur when fraudsters make minor deposits of digital currencies into a wallet that bears resemblance to the actual recipient's address. The deceitful individual hopes that the real owner will unintentionally replicate and transfer funds to the fraudulent address. The Binance algorithm works by highlighting suspicious transactions, often those with nearly no value or with unknown tokens. These transactions are matched with potential victim accounts, and malevolent transactions are timestamped to ascertain the potential scam initiation point.
In a fresh development, Salim Ramji, the incoming CEO of Vanguard, has affirmed that he won't overturn the company's earlier decision not to launch a Bitcoin ETF. The newly appointed CEO, who played a significant role in the roll-out of BlackRock's Bitcoin ETF earlier this year, stated explicitly in an interview with Barron's that consistency is crucial for companies in their product and service offerings.
According to the U.S. Department of Justice, two brothers have been implicated in a $25 million cryptocurrency theft case. The DOJ alleges that Anton Peraire-Bueno and James Pepaire-Bueno enacted a scheme that exploited the Ethereum blockchain, leading to the significant financial loss. This alleged fraudulent activity, conducted through manipulation of the Ethereum blockchain's maximum extractable value, serves as a unique instance of such criminal behavior.
Published At
5/16/2024 3:46:17 PM
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