Exchange issues caution over fraudulent intermediaries

Binance has warned crypto projects and investors to stay away from individuals or firms claiming to act as token listing agents for the exchange. The world’s largest cryptocurrency exchange by trading volume said that any third party offering paid listing services is acting fraudulently.

In a public statement released on Wednesday Binance clarified that token listings can only be requested through its official application channels. Projects are advised to deal directly with the exchange rather than relying on outside brokers or consultants.

Official listing process reaffirmed

Binance explained that it does not authorise any external agents to arrange listings on its platform. According to the exchange all legitimate applications must be submitted through official forms for Spot Listing Futures Listing or Alpha Featuring.

The company stressed that anyone claiming to guarantee a Binance listing in return for a fee is misleading projects. Binance urged teams to exercise caution and to verify all communications through its official channels.

Partial blacklist of alleged fraudsters

As part of its crackdown Binance published a partial list of entities and individuals accused of falsely presenting themselves as Binance listing agents. The exchange noted that the list is not exhaustive.

Among those named was Central Research which claims on its social media profile to represent an investment research organisation. Binance also identified the crypto incubator BitABC along with several individuals including Fiona Lee who describes herself online as a former A share trader and altcoin liquidity provider.

Binance said the community should remain alert since many other fraudulent actors may still be operating under similar claims.

Whistleblowers offered rewards up to $5 million

To encourage reporting Binance announced a whistleblower bounty of up to $5 million for valid information leading to the identification of fraudulent listing brokers.

The exchange said it would take strong action against verified offenders including possible legal proceedings. Binance added that anyone contacted by a party claiming to be a Binance employee affiliate or representative who asks for payment for listings or trading support should report the approach immediately.

Background and ongoing criticism

Founded in 2017 Binance remains the largest cryptocurrency exchange globally handling roughly $11 billion in daily trading volume and listing around 440 crypto assets according to CoinGecko data.

Despite its scale Binance has faced criticism over the years regarding its listing practices. Founder Changpeng Zhao has previously acknowledged flaws in the current process. In a post earlier this year Zhao suggested that centralised exchanges should move towards automated listing systems similar to those used by decentralised exchanges.

He argued that announcing a listing hours before trading begins can lead to price spikes on decentralised platforms followed by sell offs once the token becomes available on centralised exchanges.

Binance was contacted for comment on its previous handling of fraudulent listing agents but had not responded at the time of publication.