Australian authorities have uncovered a large-scale cryptocurrency scam in which fraudsters posed as representatives of Binance, the world’s largest crypto exchange, to deceive local investors.
Over 130 victims have been identified, with scammers using fake messages that appeared within existing Binance chat threads to trick users into transferring their assets.
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Scammers impersonation strategy
The scam involved criminals sending SMS and encrypted messages claiming the recipient’s Binance account had been compromised.
These messages included fake verification codes and a fraudulent support phone number. When victims called the number, they were told to move their funds into a “trust wallet” for security—only to have their cryptocurrency stolen by scammers.
The Australian Federal Police (AFP), in collaboration with the National Anti-Scam Centre (NASC) and Binance Australia, identified the scam as part of Operation Firestorm, an initiative launched in early 2024 to combat global cyber fraud.
AFP Commander Cybercrime Operations Graeme Marshall emphasised the challenge of recovering lost funds, as the stolen assets were quickly transferred through a network of laundering accounts.
“Once funds reach the hands of scammers, they are rapidly moved through multiple wallets, making recovery extremely difficult,” Marshall stated. “The AFP has worked closely with our partners to ensure victims are identified swiftly and given appropriate support.”
Ongoing threat and prevention efforts
The scam has raised concerns about the growing sophistication of impersonation fraud. Australian Competition and Consumer Commission (ACCC) Deputy Chair Catriona Lowe urged the public to remain cautious, stating that scammers rely on the trust users place in well-known organisations.
“We encourage Australians to verify any communication they receive, even if it appears legitimate,” Lowe said. “Always contact organizations using official details from their website or app.”
On his part, Binance Chief Security Officer Jimmy Su assured users that the company is working closely with law enforcement to curb such scams. “Education and vigilance are key. Always confirm messages through Binance Verify and never share sensitive information,” Su advised.
In conclusion, Authorities urge anyone affected to report incidents to ReportCyber, quoting reference number AFP-068.
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About Binance
Binance is a leading global cryptocurrency exchange founded in 2017 by Changpeng Zhao. It offers a platform for trading digital assets, blockchain services, and financial solutions.
The company operates in several African countries, and Binance has expanded its reach, providing access to crypto markets and financial inclusion. However, the exchange has faced regulatory scrutiny in multiple regions, including Nigeria, leading to operational adjustments.
Despite challenges, the firm still remains a key player in the crypto industry, driving innovation and adoption across various global markets.