**Binance Cracks Down on Fake Listing Agents, Offers Up to $5M Whistleblower Reward**
The world's largest cryptocurrency exchange by trading volume, Binance, has taken a stern stance against fake listing agents, warning users to be cautious and offering up to $5 million in rewards for whistleblowers who report listing fraud.
In a statement released on Wednesday, Binance outlined the official pathways and requirements for token listings on its platform, emphasizing that projects should never engage with any third-party entities and should apply directly with the exchange. The move is aimed at cracking down on third-party involvement in the listing process, which has been a subject of criticism and controversy in the past.
"Please exercise caution and remember that Binance does not authorize anyone to offer such services," Binance warned, adding that the exchange will take strong measures against fraudulent brokers identified through reports. The company also stressed that the list of perpetrators is not exhaustive, urging the community to be vigilant and report any suspicious activities via the official whistleblowing channel at audit@binance.com.
Binance has identified several individuals and entities falsely claiming to be "Binance listing agents" offering to list on Binance in exchange for payment. The list includes Central Research, which claims to represent an investment research organization, as well as the crypto incubator BitABC and individuals such as Fiona Lee, who presents herself as a former A-share trader and altcoin liquidity provider.
The exchange has also pledged to offer rewards of up to $5 million to those providing valid information about the fraudsters. "Binance will take strong measures, including legal action, against fraudulent brokers identified through reports," the exchange said in the announcement.
For projects interested in listing on Binance, the company emphasized that they can apply directly through official forms on respective platforms, including Spot Listing, Futures Listing, and Alpha Featuring. This move is aimed at ensuring a transparent and fair listing process, which has been a subject of criticism and controversy in the past.
This latest warning about fake listing agents is not the first time Binance has addressed the issue. In September, the platform issued a separate announcement urging projects to verify individuals claiming to represent Binance through a dedicated page. When asked about potential action against scammers posing as representatives of the exchange, a Binance spokesperson told Cointelegraph: "We cannot comment on any legal matters. What we can share is that we reserve the right to take necessary action to protect our community and our platform from bad actors."
Binance has been the world's largest cryptocurrency exchange by trading volume since its inception in 2017, handling about $11 billion in daily crypto trades and listing about 440 crypto assets at the time of writing, according to CoinGecko data. The exchange has often been criticized for shortcomings in its token listing process, with Binance founder Changpeng "CZ" Zhao previously calling it flawed and suggesting that centralized exchanges (CEXs) should automate listings in a manner similar to decentralized exchanges (DEXs).
"As an observer, I think the Binance listing process is a bit broken. They announce, then list 4 hours later. The notice period is necessary, but in those 4 hours, the token prices go high on DEXes, and then people sell on CEX," CZ wrote in an X post in February.
The latest move by Binance to crack down on fake listing agents and offer rewards for whistleblowers is a significant step towards ensuring the integrity of its token listing process. The exchange's commitment to protecting its community and platform from bad actors will likely be welcomed by users and investors alike.