PopcornSwap exit scam victims accuse Binance of inaction

Users accused the Binance exchange of not taking action to resolve the problems of investors in the PopcornSwap project, which committed an exit scam. The damage at current prices is ~$15 million.

“Binance, one of the largest cryptocurrency exchanges in the world, is exhibiting extremely harassing behavior that is contrary to its stated “customer first” principle,” wrote a community member using the pseudonym Neonmatrixbox.

In January 2021, the Binance Smart Chain DeFi project team embezzled 48,000 BNB (~$2.2 million at the time). The exchange froze these funds, but made no attempt to compensate the victims. According to Neonmatrixbox, the lack of actions is due to their centralized nature, which is contrary to the principles declared by Binance.

“This shows that they intervened selectively in on-chain transactions as a centralized authority and, when they did, did not follow the path of obtaining full permission,” the investor noted.

According to him, for all the time the exchange did not get in touch regarding the incident. The group of victims tried to get answers by contacting support, directly to Binance CEO Changpeng Zhao, using reputable lawyers and through other channels.

According to investors, the exchange has every opportunity to return the stolen funds. The platform has a BNB burn mechanism through which you can destroy locked coins and then reissue them to compensate for the damage.

Neonmatrixbox noted that PopcornSwap users independently conducted an audit, determining the exact number of victims and the amounts due to them. There is no need for Binance to conduct its own investigation, he added.

“On a positive note, Binance did freeze the wallet and BNB when the major hack occurred, which is a positive move. However, the subsequent silence and lack of communication about the blocked BNB is a concern. We deserve answers,” said Neonmatrixbox.

At the same time, he emphasized that Binance’s ability to stop the network “raises questions about intent and transparency that regulators and the community should be aware of.”

Recall that in the first half of 2023, the damage to the crypto industry from hacks and scams amounted to ~$655.6 million.

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