Binance CEO Richard Teng has alerted users to a “new scam” targeting the theft of cryptocurrencies. The scheme, known as the “share-seed-phrase” scam, is rapidly gaining traction.
A new scam is on the rise. The “share-seed-phrase” scam tricks users into sending funds to “safe” wallets controlled by scammers.
Stay vigilant and never share your private information! ⚠️
— Richard Teng (@_RichardTeng) February 18, 2025
Teng explained that fraudsters send fake notifications about wallet compromise, suggesting users “secure” their funds. The scammers provide a seed phrase for a wallet they control.
Victims often act impulsively, failing to verify the authenticity of notifications, according to a blog post on Binance. Once the scam is uncovered, recovering funds is impossible.
Binance reiterated that the exchange never requests private keys or seed phrases from users. Representatives also stressed the importance of verifying sources: any urgent requests should be confirmed through official Binance channels.
Earlier, a similar scheme was identified by analysts at Kaspersky Lab. In this scam, fraudsters leave wallet addresses and seed phrases in YouTube comments.