Binance CEO Richard Teng has warned the crypto community of a rising scam called “Share-Seed-Phrase.”
In a post of 18 February on X, Teng revealed that fraudsters use this misleading tactic to manipulate victims to transfer funds to portfolios that are checked by them.
How the scam works
In a blog post, Binance explained that the scammers act as crypto professionals and victims of the approach under the guise of offering security assistance.
These malignant actors claim that the account of a user has been compromised and instruct them to import a specific seed sentence to protect their assets.
In the conviction that they protect their money, the unsuspecting victims transfer their crypto to this so -called safe wallet. However, the fraudsters let the assets drain once the transaction is completed, so that no trace remains.
As a result, Binance has encouraged users to remain vigilant and to prevent them from having unsolicited messages from people who occur as business representatives.
The exchange also emphasized that it never requires sensitive information, including seed sentences, and warned users to verify communication through official channels.
Crypto -wang refinement
This scam shows the complexity of fraudulent diagrams in the crypto space.
Traditionally scammers try to steal the seed sentences of users to access their wallets. However, this method turns the approach to – fraudsters offer victims a seed sentence, where they are supplied in transferring funds before the wallet empties.
Another scam with similar mechanics came on social media platforms such as YouTube last year.
In this schedule, scammers share public seed sentences in commentary sections and they present themselves as beginners looking for help. Non -polluting users who try to gain access to this wallet are often misled because the scam hunts for their curiosity and unfairness. The portfolios, which contain tokens but lack enough gas to move them, are protected by multi-SIG technology, which is not sufficient to transfer money to transfer money. As soon as a user transfers gas into the wallet, it is immediately moved by the scammer who owns sufficient shares of the multi-sig to do this.
Security experts noted that these incidents show that cyber criminals will continue to refine their tactics to mislead users as digital assets become more popularity. According to Defillama data, more than $ 100 million was stolen from Crypto investors this year.
