Binance’s founder and CEO revealed that only about 50 of the 7,000 Linkedin users claiming to be employees of the exchange actually are.
According to Changpeng Zhao, social network Linkedin “lacks a sensible authentication system”.
“I wish LinkedIn had a feature that allowed companies to vet people. But unfortunately, there isn’t one. So when you hear, ‘Hey, I’m in charge of the listing,’ know it’s scammers, and be careful,” Zhao warned.
Typically, scammers carefully put together fake profiles, trying to show off their years of experience in the industry, as well as their many connections, to create an image of a legitimate employee. They then start looking for a victim amongst the executives of cryptocurrency firms interested in listing their token.
Once the victim is found, the scammer sends a document via email or Telegram containing details of the listing process, as well as the required initial deposit for their services. However, as soon as the victim transfers the requested assets to a deposit address, the scammer breaks off all contact and disappears.
Exchanges usually do not ask for any money or listing fees. Instead, a dedicated team checks the potential token for security, compliance, legal basis, and overall usefulness of the project, and then schedules a meeting with the asset issuer to discuss the next steps.
Earlier Coinbase reported that the US Securities and Exchange Commission (SEC) had sought through the courts information on the company’s crypto-asset offerings and proprietary revenue products.
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