Suspected multi-million scam on Binance Smart Chain

A DeFi project on the Binance Smart Chain (BSC) turns out to be a huge fraud and steals $ 31 million.

According to consistent US media reports, the DeFi project “Meerkat” is said to have committed fraud amounting to millions on the Binance Smart Chain. This morning at 10:00 a.m. Central European Time, the company reported in its Telegram group that it had been the victim of a hack – the day after it hooked up on the BSC. 13.96 million BUSD and 73,653 BNB tokens disappeared from the platform. Together that adds up to a total loss of $ 31 million.

Now it is suspected that Meerkat himself could be behind the attack. This was shown by on-chain data. Accordingly, the attackers used Meerkat’s own developer accounts to make changes to the smart contract. This accusation is reinforced by the fact that shortly after the tokens disappeared, the DeFi project cut all connections to their social channels. For example, the Twitter-Account offline and the website is for sale for $ 10,000. The company seems to have lived up to its name and has literally disappeared into the ground.

The deceived users are of course shocked. Meanwhile, they are increasing complaints on the Binance community page. There is now its own on Reddit too Thread. There the term “rug pull” comes up again and again (in German: pulling the rug from under someone’s feet). This describes a type of fraud in the DeFi sector in which the project manager promises high profits and great future prospects and then suddenly disappears. BTC-ECHO asked Binance how the platform intends to prosecute the fraudsters and whether the crypto exchange will pay compensation to its users. So far, the request has remained unanswered.

Increased plagiarism allegations against Binance Smart Chain

In addition to the current scam, do more Plagiarism allegations the round on the DeFi platform. With its smart chain, Binance has entered into direct competition with Ethereum. Now, however, there are increasing allegations that the supposed competition is in many cases nothing more than a mere copy. This is what has happened to the BSC-based platform Musical Beats, which was pulped again just a few days after its launch.

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The background: Ethereum developers and community members had accused the BSC project of EulerBeats to be copied and to benefit from its success. EulerBeats transforms the works of the Swiss mathematician Leonhard Euler into unique visual and acoustic works of art. Users can add these works to their collection and receive a percentage share of sales of prints of these works. Experts, such as ConsenSys legal expert Matt Corva, partially confirm the plagiarism allegations. Corva even speaks of one Copy-and-paste-Procedure. This is all the more ironic since EulerBeats is about participating in copyrights.

The irony currently seems to be an obedient companion of the BSC. Regardless of this, the platform must further develop its security structures in order to avoid scams in the future if it wants to become dangerous to the industry leader Ethereum.

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