Binance CEO shares tips on avoiding Web3 wallet scams
Binance CEO raises alarm on rising Web3 wallet scams
Richard Teng, CEO of Binance, has issued a stark warning to the crypto community, emphasizing the growing sophistication of scams targeting Web3 wallet users. Using his official X account, Teng urged crypto holders to stay vigilant against malicious actors exploiting urgency and fear to deceive investors. He also shared an in-depth Binance article shedding light on the most common scams plaguing the blockchain industry today.
Knowledge is the best defense
Teng stressed that awareness and caution are the most effective weapons against crypto fraud. Never import a seed phrase provided by anyone else, no matter how legitimate the request seems. Additionally, he warned against rushing into «urgent fixes», as scammers frequently create artificial pressure to trick victims into compromising their security.
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The most common crypto scams
According to the Binance article, wallet rectification scams have become one of the most persistent threats in the industry. Fraudsters behind these scams claim to help users resolve access issues, failed transactions, or slippage errors, often impersonating official platforms. In reality, they trick victims into handing over their private keys or seed phrases, allowing them to drain wallets in seconds.
Another alarming scam detailed in the article is the seed phrase trap—a deceptive tactic designed to exploit curiosity and greed. Criminals lure users into engaging with compromised wallets under their control, often by offering «free» tokens, typically in USDT. However, these fake wallets lack sufficient balance to cover transaction fees, forcing users to add their own funds. The moment they connect their wallets, their assets are siphoned away.
How to stay safe
To help users avoid falling victim to these scams, Binance outlined several critical safety measures:
- Never share your seed phrase with anyone or input it into an unknown platform.
- Be skeptical of urgent requests to fix alleged wallet errors.
- Avoid engaging with publicly shared wallets, especially those promising free tokens.
- Verify website authenticity before entering any sensitive information.
Binance's latest warnings come at a time when cryptocurrency scams are becoming increasingly sophisticated, leveraging psychological manipulation to target even experienced users. For more insights, read our detailed article on recognizing and avoiding crypto scams.
