Inventory of Binance Smart Chain (BSC) exit scams exceeds 15 cases, victims share personal experiences: "Binance can't recover your money"

Binance Smart Chain (BSC) experienced a significant Rug Pull incident in early March, where the project team Meerkat Finance reappeared two days after the incident claiming it was just an experiment and promised to return user funds promptly. However, there have been several project exit scams on BSC since its launch.

Inventory of BSC Exit Scams

According to data from BscScan and statements from readers and victims in the BSC ecosystem, there have been more than 11 Rug Pull incidents, not including projects that have officially ended. The list is as follows:

Furthermore, according to "Wu Talks Blockchain", by the end of January this year, several projects had already exit scammed, including:

• Multi Financial
• Popcornswap
• Zap Finance
• SharkYield

Binance's Ambiguous Attitude

Throughout the BSC frenzy, Binance's approach to handling exit scams can be described as ambiguous, sitting somewhere between centralization and decentralization. As previously reported:

Assets within BSC are BEP-20 standard tokens. To withdraw these assets from the BSC network, there are three paths: transfer to Binance Exchange, transfer from Binance Bridge to a wallet on another network, or transfer to another exchange that supports BEP-20.

After Meerkat's suspected exit scam, Binance indeed directly blocked withdrawals from Binance Bridge.

With both exchanges and Binance Bridge setting up barriers, the hacked funds "seemingly" have no way out, and Binance does not need to roll back the blockchain and face public criticism. However, according to readers, in cases where exit scam projects act swiftly, Binance is actually powerless to stop them. Even submitting a ticket does not change anything.

Slow Response from Binance

Readers point out that project exits often happen rapidly, and even withdrawing directly from Binance using dummy accounts is not a problem. However, Binance's security team responds slowly, unable to cut off the cash flow in a timely manner, often only starting to address the issue days after users report it.

Although BscScan marks projects as "Rug Pull" after a few days, even if a ticket is submitted, customer service can only offer explanations like "Not an official Binance Chain project" or "Binance has not audited all projects."

At the same time, there is no guarantee of fund recovery.

From this, we can also understand the crucial information needed when users become victims on BSC and need to submit a ticket:

• Provide evidence that liquidity is unable to be redeemed
• Transfer records: transaction records of coins sent to the contract

Binance Strategy: Block Funds, No Blockchain Rollbacks

Similar to the previously successful recovery by Binance in the "Wine Swap" exit scam case, without rolling back transactions, the ideal strategy for Binance is to collaborate with major exchanges and the Binance Bridge to block funds.

However, with the rise of BSC and new projects launching one after another, Binance seems unable to monitor all project movements in real-time. Perhaps it is being compared to Ethereum, so Binance is no longer actively involved.

But leaving aside whether BSC violates the spirit of decentralization, objectively speaking, Binance has done its best for users. Compared to hacked DeFi protocols on Ethereum, although Binance cannot guarantee fund recovery, it appears to do more for users.

As Binance co-founder He Yi said: "Why don't you go ask Vitalik Buterin when Ethereum mining loses money?"

However, if BSC cannot address its issues of centralization in the future, operate more efficiently, and use centralization to its advantage in terms of transaction costs, while using decentralization as a shield when users lose money, then the controversy surrounding BSC may continue to escalate within the community.