Binance CEO alerts crypto community about expanding share-seed-phrase scam
Binance or any other reputable platform will never ask for a seed-phrase
Binance CEO Richard Teng has issued a warning to the cryptocurrency community about a new scam known as the “share-seed-phrase” scam.
Teng explains that the fraud involves sending fake alerts to users, falsely claiming that their wallets have been compromised. The scam preys on fear and urgency, tricking victims into transferring their funds to wallets controlled by the scammers.
Key takeaways
- Scam Mechanism: Fake alerts claim wallet breaches to induce panic.
- Action Prompted: Victims are urged to transfer funds to a scammer-controlled wallet.
- Advice: Remain skeptical; verify alerts before acting.
Scam mechanism
According to Richard Teng, the share-seed-phrase scam operates by sending targeted messages that warn users of a supposed compromise of their wallet security. These messages instruct victims to move their assets to another wallet, purportedly to secure their funds. However, the destination wallet is under the control of the scammers, effectively diverting the victim’s assets.
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This latest development comes as part of a series of warnings from Teng, who has been increasingly vocal about fraudulent activities targeting crypto users.
In his advisory, Teng urges users to exercise caution and adopt a healthy skepticism toward unsolicited alerts. With crypto scams on the rise, his warning underscores the importance of verifying any claims before taking action with one’s digital assets.
2025 Crypto Crime Report. Source: The Chainalysis
Binance CEO stated: “Scammers prey on emotions—stay vigilant.”
The first thing to check is the source. Binance or any other reputable platform will never ask for a seed-phrase or offer to transfer your assets to an unknown address. If you receive such a request, you should immediately be wary.
The role of fear and urgency
Teng emphasized that scammers leverage fear and urgency to compel victims into quick, unconsidered actions. “If you receive a message claiming your wallet has been compromised, pause. Take a deep breath. Think before you act,” Teng advised. This call for measured responses is critical, as rapid decisions often lead to irreversible financial loss.
Industry implications and cautionary measures
The warning comes amid growing concerns over crypto fraud, urging both novice and experienced traders to verify any unusual communications with their wallet providers. Teng’s alert highlights the need for increased awareness and due diligence in an industry where digital assets are highly vulnerable to sophisticated scams.
As crypto markets continue to evolve, regulatory bodies and industry leaders are calling for robust measures to protect users. Teng’s warning serves as a timely reminder that vigilance and skepticism are essential in navigating the volatile world of digital finance. Moving forward, enhanced consumer education and improved security protocols will be crucial in mitigating the risk of such scams.
We also wrote that hackers breach ai16z founder account and promote scam ELIZA token.
