Binance Blocks 297 ‘Sybil’ Accounts in Megadrop Programme

Some malicious participants in the IEO of the Lista DAO (LISTA) token on Binance’s Megadrop platform faced account blocks, as reported by journalist Colin Wu.

吴说获悉，据社区流传的截图，有人疑似通过数个 Binance 账号参与 Megadrop Lista 活动，在获得奖励后归集到一个账户并卖出，随后被 Binance 冻结资产并要求退还。值得注意的是，据 Binance Megadrop 条款，如有恶意刷量行为、批量注册小号、自买自卖等作弊行为，Binance…

— 吴说区块链 (@wublockchain12) June 25, 2024

“According to screenshots circulating in the community, someone allegedly participated in the Megadrop event through multiple Binance accounts, collected rewards into one account, and sold them, after which they were blocked [by the platform team] and asked to return the assets,” the report states. 

Under Wu’s post, Binance representatives confirmed the incident. According to their statement, some users acquired “a large number of accounts with completed KYC to receive rewards in batches.”

以上内容基本属实。有人通过大量购买 KYC 批量获取 Megadrop 奖励，在被系统风控后尝试将资金归集到一个账户试图逃脱，因而再次触发风控被冻结。截止目前，Megadrop 活动共计封禁 297 个主账号，其中一个甚至归集了高达 9000 个 KYC…

— Binance Web3 (@Web3WithBinance) June 25, 2024

Megadrop has blocked a total of 297 dishonest participants in the programme, one of whom “even amassed up to 9000 verified accounts.”

Binance clarified that after the security system detected the wrongdoers, they transferred all farmed LISTA to one account in an attempt to sell them, but were blocked.

“We always uphold the rights of genuine users. The frozen funds of the wrongdoers will continue to be used for project activities to return them to the real participants of the programme,” Binance emphasised. 

According to the exchange’s statistics, more than 1 million users participated in the IEO of ListaDAO, of which 102,000 were identified by the system as fraudsters. 

Binance introduced the Megadrop platform for token launches with airdrops and Web3 quests in April. It allows BNB holders subscribed to Simple Earn products to receive rewards for completing tasks. 

The pilot project of the programme was the Bitcoin restaking protocol BounceBit. 

In June, the crypto exchange announced the HODLer Airdrops initiative for BNB holders, which will provide early access to tokens preparing for listing on the platform.