Sirlibz
Binance has announced a successful recovery of $344,000 from Wine Swap makers. Wine swap is an automated market maker platform that is built on the recently released Binance Smart Chain (BSC). The platform was launched on October 13 and within an hour of launch, it had pulled over $345,000 of funds on the platform, the creators then decided to pull them off the exchange platform.
They decided to move the funds across different platforms so as to get the funds off Binance Smart Chain, most of the funds were swapped to the Ethereum blockchain and some sent to the Binance’s centralized bridge and two other cryptocurrency exchanges. Funds sent to Binance were reportedly frozen.
On-chain analysis helped the Binance team identify the owners of those addresses and who the creators of the platform were, they were notified and they have returned funds to Binance. All funds returned will be given back to the owners after most of the funds converted to other tokens must have been converted back.
The Defi world is filled with scams like this, where platform owners sell the dream to the investors only to later try to make away with people’s funds, sometimes it’s an unaudited Smart contract with a technical bug being found by hackers and they take the opportunity to exploit the bug, and investors are left hanging.
On chain analysis has also proven itself to be a smart tracker of this funds down to the owners of the wallets, in cases of the hack of dForce or bZX’s, they helped them to identify and catch the perpetrators.
Binance, the parent company incharge of the Binance Smart Chain has also stated that they do not hold any central power over the blockchain with regards to controlling funds. Hacked funds that make it to Binance cryptocurrency exchange can be frozen since it holds the power to a centralized exchange or body. However, Binance controls a large portion of BNB stake which makes it control a large portion of the validations on the network and Binance CEO, Changpeng Zhao refers to it as “Centralized Decentralized Finance “.
