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Binance announced that after the Megadrop IEO event, it banned around 300 accounts - 297 to be precise. The reason? Sybil attacks. Airdrop hunters use various sophisticated strategies to get as many free tokens as they can. However, more projects are implementing strategies to fight farmers.
Over a million users participated in the Megadrop IEO event, demonstrating a high level of user participation. Yet despite enormous interest, 102,000 accounts were found to be fraudulent by Binance's risk control procedures. As more accounts are examined, this number is updated continuously.
These accounts were primarily used in Sybil attacks, in which several accounts were created in order to take advantage of airdrop. Following a thorough investigation, 297 primary accounts were confirmed by Binance and banned. As an example of the scope of the Sybil attack, one of these accounts alone had accumulated up to 9,000 KYC accounts.
Arman ShirinyanThe strict risk control procedures implemented by the platform ensured that these malicious activities were quickly detected and addressed. To continue providing for actual users, project expenses will be funded by money from frozen and recovered accounts. Through proactive measure, Binance hopes to prevent system abusers from profiting from airdrop events and instead to assist authorized users. This action is a component of a larger plan to preserve the platform's IEO and airdrop events' integrity.
Users of Binance have been reassured by the company that only fraudulent accounts are the focus of the risk control procedures. There is no need for genuine users to be concerned about their accounts being impacted.
Binance users can use the online customer support portal to file a complaint if their account has been mistakenly classified as fraudulent. The support staff is dedicated to finding quick solutions to these problems so that real users do not have to suffer. As airdrop hunters use more advanced tactics to take advantage of free token distributions, Sybil attacks have grown to be a serious threat in the cryptocurrency space.
Tomiwabold Olajide
Denys Serhiichuk
Dan Burgin
Vladislav Sopov
U.Today Editorial Team