Binance announced that after the Megadrop IEO event, it banned around 300 accounts (297 to be precise). The reason? Sibyl attacks. Airdrop hunters use several sophisticated strategies to get as many free tokens as they can. However, more projects are implementing strategies to fight farmers.
Binance announced that after the Megadrop IEO event, it banned around 300 accounts (297 to be precise). The reason? Sibyl attacks. Airdrop hunters use several sophisticated strategies to get as many free tokens as they can. However, more projects are implementing strategies to fight farmers.
More than one million users participated in the Megadrop IEO event, demonstrating a high level of user participation. However, despite the huge interest, Binance’s risk control procedures discovered that 102,000 accounts were fraudulent. As more accounts are examined, this number is continually updated.
These accounts were primarily used in Sybil attacks, where multiple accounts were created to take advantage of airdrop. After a thorough investigation, Binance confirmed and banned 297 top accounts. As an example of the scope of the Sybil attack, one of these accounts alone had amassed up to 9,000 KYC accounts.
Arman ShirinyanThe strict risk control procedures implemented by the platform ensured that these malicious activities were detected and addressed quickly. To continue serving real users, project expenses will be financed with money from frozen and recovered accounts. Through a proactive measure, Binance hopes to prevent system abusers from profiting from airdrop events and instead help authorized users. This action is one component of a broader plan to preserve the integrity of the platform’s airdrop and IEO events.
The company has assured Binance users that only fraudulent accounts are the focus of risk control procedures. Genuine users do not need to worry about the impact of their accounts.
Binance users can use the online customer support portal to file a complaint if their account has been mistakenly classified as fraudulent. The support staff is dedicated to finding quick solutions to these problems so that real users don’t have to suffer. As airdrop hunters use more advanced tactics to take advantage of free token distributions, Sybil attacks have become a serious threat in the cryptocurrency space.
