A Twitter user reached out to the Twitter accounts of Binance and CEO Changpeng “CZ” Zhao to help them retrieve the breaks they believe were stolen from their account, but allegedly nothing was done about it. They claimed that the reason for this was that the customer had three days to request a withdrawal. After the Twitter user complained that nothing was done, Binance terminated the user’s Binance account.
The Twitter user, called CoinMamba, is trading in futures and investing in a cryptocurrency during this transaction. According to the person, the API key associated with the cryptocurrency trading site 3Commas was stolen. Immediately afterward, he claims that he lost money in his Binance account. After these events, he started tweeting about Binance starting on Tuesday.
Some FTX, Binance, and Coinbase users said their exchange AIP identities were stolen after they signed up with third-party trading bots like 3Commas. This is also thought to have become a phishing scam used to steal money from users’ accounts.
Trading bots like 3commas are frequently preferred by users as they offer automated trading solutions. These trading bots can be directly linked to the customers’ trading account on the exchange, and the app can then do it automatically. These trading bots work with FTX, now with Binance and Coinbase.
Most of the fraudsters were posing as 3commas employees and obtaining the personal information of the users while they were registering. For this, they used a fake website designed as if it were a 3commas site.
Binance CEO Changpeng Zhao has requested that traders remove their API keys so third-party platforms can stop these attacks. Third-party trading applications can only be granted access with the help of API keys. In fact, third-party trading bots emptied a Chinese user’s account on October 21, 2022, and stole millions of Bitcoin, Ethereum, and FTT.