Binance Declares War on Fraudulent Listing Agents, Offers $5 Million Bounty for Whistleblowers
Binance just put a multimillion-dollar target on the back of crypto's shadowy middlemen.
The world's largest exchange is cracking down on fraudulent listing agents—the fixers who promise projects a shortcut to the big boards for a hefty, and often fake, fee. In a move that shakes the industry's underbelly, Binance is now offering a staggering $5 million reward for information that leads to the conviction of these scammers.
The Hunt for the Listing Grifters
For years, a murky ecosystem of self-proclaimed "insiders" has preyed on eager crypto startups. The pitch is always the same: pay us a six or seven-figure sum, and we'll use our exclusive connections to get your token listed on a top-tier exchange. Most of the time, the connection is pure fiction, and the funds vanish into a web3 black hole.
Binance's new bounty program cuts through the noise. It's a direct, aggressive strike at the credibility of these agents. The message is clear: if you're selling snake oil, someone in your circle might be tempted by a life-changing payday to turn you in.
Cleaning House with Cold, Hard Cash
The $5 million figure isn't just for show—it's a calculated deterrent. It signals that the exchange is willing to spend serious capital to protect its integrity and that of the broader market. This isn't a PR gesture; it's a financial sting operation funded by the very platform these fraudsters are trying to exploit.
It also cleverly shifts the burden. Instead of just playing defense and warning projects, Binance is putting the fraudsters on defense. Now, every whisper in a private Telegram group or boast in a Discord channel carries the risk of a $5 million betrayal.
A Necessary Jab at a Broken System
Let's be cynical for a second: the very existence of this bounty highlights how broken the traditional listing process has felt. When opaque gatekeeping creates a market for "agents," you're practically inviting grift. It's the financial world's oldest story—create a bottleneck, then sell the bypass.
Binance's war on fake agents is more than a security update. It's a power play that asserts control over its own gateway, promises a cleaner ecosystem for legitimate builders, and dares the scammers in the shadows to keep talking. Their next confident pitch could be worth a fortune—to someone else.
Binance urges projects to avoid listing agents and use official listing channels
Binance explained that all projects intending to list on its platforms should apply directly through its official channels, tailored to the different stages and needs of the projects.
These channels include Binance Alpha, a pre-listing token selection platform that focuses on discovering early-stage crypto projects within the Web3 ecosystem. The exchange said that this platform will offer Pre-Token Generation Events (Pre-TGE), Prime Sale Pre-TGEs, Token Generation Events (TGE), Alpha Airdrops, and community engagement programs.
Binance Futures is also among the exchange’s official listing channels. According to the announcement, users can utilize the platform to get access to liquidity and hedge their positions.
The announcement identified Binance Spot as the exchange’s third listing channel that allows users to buy, sell, and hold high-quality crypto assets.
The exchange’s listing measures come amid an ongoing crackdown on the increased scams around token listings.
According to the notice, the malpractices originate from fraudsters purporting to be insiders or its connected facilitators, who promise guaranteed listings on the exchange while demanding facilitation fees. The exchange highlighted that these claims are usually false and misleading. The announcement also explained that token listings are free and the exchange does not charge for the service.
The crypto exchange also published its formal listing framework. It encouraged projects to report claims made by any representative outside its official application channels in exchange for monetary rewards totaling $5 million. The crypto exchange cautioned that projects using listing agents will be disqualified and blacklisted.
Binance blacklists multiple parties for offering listing services
According to the announcement, Binance concluded an internal audit and has blacklisted various individuals and entities. These parties include Central Research, May/Dannie, Andrew Lee, BitABC, Suki Yang, Fiona Lee, and Kenny Z. The exchange noted that the blacklisted parties falsely implied to have close ties with the exchange and pledged to pursue legal action against them where appropriate.
The crypto exchange said it had “received reports about certain individuals and entities falsely claiming to be ‘Binance listing agents’ or offering to secure token listings on Binance in exchange for payment.” The exchange urged projects to “exercise caution and remember that Binance does not authorize anyone to offer such services.”
Data from RootData, a Web3 investment research organization, shows that Central Research (one of the blacklisted parties) has been involved with several crypto projects, including Nebula Revelation, Fireverse, AKI Network, Artyfact, and Fusionist. Fusionist (ACE) currently trades on Binance.
However, the exchange did not relate the blacklisted entities to any crypto project that has already been listed on the exchange.
The news comes after the exchange suspended an employee for allegations of insider trading following the release of a newly announced crypto token that raised suspicions. Binance stated that its internal audit department conducted an investigation, which revealed that one of its employees promoted a new listing using official channels before the token was issued on-chain.
Binance also banned more than 600 accounts linked to the use of unauthorized third-party tools on its listing platforms. A previous Cryptopolitan report, dated October 19, highlighted that the exchange’s MOVE stemmed from increased usage of automated bots and scripts specifically designed to gain an unfair advantage over real users, particularly in Alpha and other features.
The exchange also urged market participants conducting trading and investing activities through its platforms to report similar malicious activities, so that appropriate measures can be taken.
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