Binance, the world’s largest cryptocurrency exchange, has banned over 600 user accounts, asserting a commitment to platform fairness and security by cracking down on the use of unauthorized third-party tools.
The exchange cited violations of its terms of service as the reason for the account closures. This measure targets users employing “illegal third-party tools,” according to a statement posted in Chinese on Binance’s official X account.
Users found in breach of these terms face severe penalties. Consequences include permanent disqualification from all Binance activities and the confiscation of any profits obtained from its Alpha events.
Binance’s public announcement emphasized its dedication to a fair and equitable Alpha platform. It also invited community members to report any suspicious activities they observe.
The company is offering an incentive to encourage vigilance within its user base. The first user to provide a verified report of illicit tool use can receive up to 50% of the recovered profits from an infringing account.
Evidence required for such reports can include screenshots, user identification numbers (UID), IP addresses, or related blockchain addresses. These reports are to be submitted via official links provided by the exchange.
While Binance did not specify the exact unauthorized tools involved in these recent bans, internal policies suggest they could include unapproved trading bots, automated scripts, misuse of application programming interfaces (APIs), or the sharing of user accounts.
This enforcement action aligns with recent updates to the platform’s Terms of Use, which were revised on October 10. These revised terms govern all services offered by Binance.
“Our team reviewed and banned over 600 accounts last week for using illegal third-party tools,” Binance stated in its social media post.
The move has drawn mixed reactions from the cryptocurrency community. Some users have questioned the overall effectiveness of such measures, while others have expressed concern that legitimate accounts could be inadvertently affected and blocked erroneously.
This crackdown reinforces Binance’s broader focus on security and compliance within the volatile cryptocurrency industry. It comes at a time when the sector faces increased scrutiny from global regulators. The specific identities of the affected users were not disclosed by the exchange.